Process to Take Over Ownership and Mortgage of Quitclaim Property

[abmasterflex]

My question involves real estate located in the State of: Arizona

My grandmother was going to co-sign for my husband and I to buy a home. Somehow the property purchased ended up being in her name only and we were told we could refinance into our names and remove grandma in 2 years time. We have been making the payments the entire time (but we write the checks to grandma, not the loan company...) It has been over two years, the house is still in grandmas name only. All parties involved are very eager to get grandma off everything and us on. We have a quitclaim deed (unfiled) and want to transfer ownership of the home into my name and/or husbands name as well as have the mortgage in our name. We want a new mortgage because grandmas loan is actually 2 loans-one is an ARM and one is Interest only. Really need help figuring out the proper steps to take to get this done. Have not filed quitclaim in fear of gift tax/capital gains tax- because the only reason for quitclaim is to transfer the home AND the debt of the loan to my husband and I. There is no real gift or gain. Should I file the quitclaim? Should I do it thru a title company or just at the county recorder's office? Can we "refinance" the loan with another company in our names and remove grandma? or do we have to essentially "purchase" the property from grandma? Praying for help!!! Thanks in advance!

[Mr. Knowitall]

Generally speaking, you would arrange your new financing, and transfer the property from grandma to you (while paying off the existing mortgage) at the closing.