My question involves a foreclosure in the State of: California

I am being offered a loan work out plan that requires me to waive my rights under CA Civil Code 1542. On the work out plan docs it reads "I expressly waive Section 1542 of the California Civil Code, which provides that: 'A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release which if known by him must have materially affected his settlement with the debtor."

Does anyone understand what rights I would be giving up? Also, why is this important to the mortgage company?