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 recission is a cancellation or voiding of something as if it had never transpired. A declaration of default is a notice to a borrower that he/she is behind in payment on a loan and election to sell means that the lender is not accepting late payment and will foreclose on the property. The language quoted appears to day the lender opts to keep the loan in force as if the notice to sell was never made, so that the date which the lender’s lien began remains the same date as when it was originally filed when the loan was made. However, it is recommended you contact the lender to understand the circumstances and conditions surrounding this reversal, as it may not mean you are not in breach or liable for a default.
The following is an example of a clause in such a notice:
"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."
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
