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

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.