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Or purposefully destroyed to cover up for nonconforming, or poor underwriting standards that wouldn't have allowed the mortgage to be bundled into a security, allowing the investor(s) to put the mortgage back onto the lender. I believe this entire thing goes deeper than many folks realize. So many of these mortgages couldn't have met standards to get bundled for investors. In their covering their tracks, the banks broke the chain of paperwork to prove who owns it.

How can a lender foreclose if they have no documentation they in fact have a legitimate claim for said mortgage? I think the first initial sale of some of these mortgages contained said documents and got bundled, and then as mortgage companies began to fold they were bought wholesale with only a portion of the paperwork and the new lender 'assumed' they now owned the mortgages... as this one story demonstrates it was not the lender that disclosed lack of documentation but buyers in foreclosure asking the right questions.

IF the lender cannot demonstrate they own the mortgage how can they legally foreclose? There can be no clean title change to resell and who in their right mind will buy a mortgage for property that apparently legally does not exist.

And how can a county assess taxation upon property they cannot prove exists other than its literal presence?

I have no doubt this scam goes beyond our wildest imaginations and once it took flight it became a dog pile, almost by design to never discover the originators of this scam.