Note: When preparing this form, the attorney should carefully review Tex. Prop. Code §§ 51.0001, 51.0025, and 51.0075 and Tex. Bus. & Com. Code §§ 3.203 and 3.301 to ensure any reference to a person accurately describes the role the person holds or performs in the context of a foreclosure proceeding, e.g., references to “noteholder,” “beneficiary,” “owner,” “lender,” “obligor of the debt,” “mortgagor,” “mortgagee,” or “mortgage servicer” as appropriate.
Rescission of Sale by Mutual Agreement
Notice of confidentiality rights: If you are a natural person, you may remove or strike any or all of the following information from any instrument that transfers an interest in real property before it is filed for record in the public records: your Social Security number or your driver’s license number.
[Name of mortgagee] (“Mortgagee”) is the owner and holder of a promissory note dated [date] in the original principal amount of $[amount] from [name of obligor] to [name of lender or nominee]. Said note is secured by the deed of trust dated [date], and recorded in [recording data] of the real property records of [county] County, Texas, with respect to the following described property (the “Property”): [legal description].
In compliance with the provisions set out in section 51.002 of the Texas Property Code, the Property was posted for foreclosure sale, and on [date], [name of substitute trustee], the named Substitute Trustee, conducted a foreclosure sale whereby the Property was sold to [name of purchaser] (“Purchaser”) as set out in the Substitute Trustee’s deed dated [date], which is recorded in [recording data] of the real property records of [county] County, Texas.
[Name of mortgagor] (“Mortgagor”), Mortgagee, and Purchaser have agreed to cancel and rescind the foreclosure sale and conveyance of the Property to Purchaser; rescind the acceleration of the indebtedness; and reinstate the note and deed of trust and return the parties to the status quo existing immediately prior to the foreclosure and conveyance.
For good and valuable consideration, the receipt and sufficiency of which is acknowledged along with the covenants and agreements contained herein, Mortgagee, Purchaser, and Mortgagor stipulate and declare (1) the Substitute Trustee’s deed dated [date] is void and of no force and effect whatsoever and that all acts conducted with regard to the foreclosure sale of [date] are rescinded; (2) Mortgagor and Mortgagee are returned to the status quo existing immediately prior to the foreclosure and conveyance; and (3) the note and deed of trust are reinstated in accordance with their original tenor and effect existing immediately prior to the foreclosure and conveyance.
This document is executed and filed for record to purge such real property records of all evidence of the foreclosure by the Substitute Trustee’s sale including, without limitation, the Substitute Trustee’s deed described above as if the deed had not been filed of record.
Mortgagee, its successors, and assigns, and Purchaser, his heirs, and assigns, to the extent necessary to return the parties to the status quo and re-vest legal title to the Property to Mortgagor, grants, sells, and conveys to Mortgagor the Property, subject, however, to the indebtedness evidenced by the note and the liens and security interests securing payment of the note, and other encumbrances, restrictions, and covenants of record, including without limitation the deed of trust and all other collateral loan instruments executed to purchase the Property, to the extent the same validly exists and affects the Property; to have and to hold the Property, subject to the matters hereinabove set forth, together with all and singular the rights and appurtenances thereto in any way belonging unto Mortgagor and Mortgagor’s heirs and assigns, forever; and Mortgagee and Purchaser bind themselves and their respective heirs, successors, and assigns to warrant and forever defend all and singular the Property unto Mortgagor and Mortgagor’s heirs and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof, by, through or under Mortgagee and Purchaser, but not otherwise.
Executed on [date].
MORTGAGEE
By:________________________
Printed Name:________________
Title:______________________
State of Texas)
County of)
Before me, the undersigned notary public, on this day personally appeared [name of acknowledger], who is the [title] of [name of mortgagee], known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that [he/she] executed the same for the purposes and consideration therein expressed.
Given under my hand and seal of office this [specify] day of [month] [year].
Notary Public, State of Texas