Full question:
What does a Notice of Rescission of Declaration of default and Demand for Sale and Notice of default and Election to Sell mean? It is notice hereby given that the beneficiary does hereby rescind, cancel and withdraw said Declaration of Default and Demand for Sale...... Intent of Beneficiary that the above described Deed of trust and all obligations secured thereby shall remain in full force and effect and maintain its rightful priority as if said Declaration and Notice had not been made and given. Does that mean the owner gets to keep the house and it no longer will be going to auction/foreclosure or short sale?
- Category: Real Property
- Subcategory: Foreclosure
- Date:
- State: California
Answer:
A rescission cancels or voids a previous action, making it as if it never happened. A declaration of default informs a borrower that they are behind on loan payments, and an election to sell indicates that the lender intends to foreclose on the property. The quoted language suggests that the lender has chosen to keep the loan active as if the notice to sell had never been issued. This means the original date of the lender's lien remains unchanged.
However, it is crucial to contact the lender to clarify the specific circumstances surrounding this rescission. It does not necessarily mean you are no longer in breach of the loan agreement or that you are free from liability for any defaults.
For example, a clause in such a notice might state: "This rescission shall not in any manner be construed as waiving or affecting any breach or default past, present or future, under said Deed of Trust, or as impairing any right or remedy thereunder, but is and shall be deemed to be, only an election, without prejudice, not to cause a sale to be made pursuant to said Declaration and Notice, and shall in no way jeopardize or impair any right, remedy or privilege secured to the Beneficiary and/or Trustee."
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