What about the rest of us? It follows logically that if the people forclosing on the home do not have clear title, then neither do the people being forclosed upon, AND neither does anyone else who purchased or refinanced a home since the creation of this system whereby the different pieces of a mortgage were split and sold off into tranches.
If people who never could own a home end up keeping theirs because the bankers goofed on the foreclosure papers what do you think all the people who keep paying for their homes will do? Say? Vote for? Vote against?
You know, it isn’t even a question of who holds “title.” The purchaser holds the title. The purpose of a foreclosure is to obtain that title. The only thing possibly fuzzy because of all the transfers of the loan is who holds the note and trust deed. But the trust deed isn’t “title,” it is a lien.
What is absolutely clear by the time these things get to foreclosure is that the one person who has no right to the house is the one sitting in it, who hasn’t made payments on it for many, many months. If two banks ultimately end up fighting over who owns the loan, it would not affect the home purchaser at all.