Not quite. There are a number of problems on both ends.
When I exiled myself from NY, my closing of the co-op sale was delayed by 2 weeks since Morgan Stanley, the loan originator and servicer, had trouble finding the actual deed.
In a legal system, it is entirely fair and reasonable to expect that proof, i.e. signed paperwork, be presented as evidence. I have worked on systems, many years ago, that were automated ticklers that would provide notice that a new UCC 7(?), or lien (which is what the bank holds on your property if you have a mtg), had to be renewed. This stuff used to be taken seriously. Then again, another place I worked at bid on mortgages that were faxed in, i.e. we had an address, an amount, a coupon, and a term; a scratch and dent loan. Made a ton of money of that garbage, and thankfully now out of business.
I declare a pox on both sides, but it looks really bad that major companies were sloppy in their handling of paperwork.
Yes. I worry about the state of the papers on normal mortgages. We have refinanced our home several times over the last 20 years — a new mortgage every time the interest rate dropped a couple of points. In turn, those mortgages were sold to other banks so that I’m not sure which entity is holding it now. We make payments to Wells Fargo, but ???
At the end of the day, will they be able to find out deed so that I can make the last payment? Something similar happened about the last car I bought with a loan. The bank was sold, and the new bank ased ME for the certificate of ownership. !!! I fianlly got a cheesy letter of ownership several months after I made the last payment. Doesn’t look official to me. Will the same thing happen about my house?