What happens after settlement of a refinance property in the District of Columbia?
A few things that happen after closing a refinance of a property in the District of Columbia.
First, if the property refinanced was your principal residence, a period of three business days from the date of signing the documents – often called the three-day right of rescission – must pass before the loan process can be completed.
The rescission period is the time in which a consumer can re-examine the loan to make sure it is something the consumer truly wants to take out and can cancel the loan prior to midnight of the third day. (In certain very specific circumstances, this three day period can be waived for principal residences.)
If the refinanced property was an investment property, no rescission period is required.
The second thing that happens is your loan is funded by your lender. (The lender usually waits to fund the loan until after any required rescission period has passed.)
If your refinance was a “cash-out” transaction, in other words, you are to receive money, then the title company sends the money to you either in check form or a wire transfer, whichever you requested at settlement.
The third thing that happens is your fully signed and notarized loan documents are sent to the lender and any document to be recorded is sent to the Recorder of Deeds office, usually via a recording service provider.
Lastly, once the lender lien document has been recorded at the Recorder of Deeds office, then the public records will reflect a new loan or lien against your property. The recorded document is sent directly to the lender.