I think it’s more accurate to say they think their offering to pay in full. The cancelation comes if the loan holder doesn’t accept their “special deposit” (which now that I typed it out with quotes I can’t shake the association with ejaculation).

I think the “special deposit” shudder is part of the whole “the gubmint has an account with millions of dollars tied to your name” shenanigans they try to play.

Yes. The bank holding the title does not, however.