I sure don’t understand your idea that cheating the bank is any different than the bank cheating.
If you take out a loan to buy a house, you should pay back the money or give back the house.
When you buy a piece of real estate, certain instruments are held in trust until the note is satisfied. That trust enjoins both parties to perform according to the contract documents - but the bank didn’t. It’s a very hig probability the borrower will never own the home because the title is screwed up.
If I default, THEY get the house. That’s fair.
If they default, I get the house. That’s fair. Trouble is, I’ll never really own it without possible encumberances. The true holder of the original note just might show up some day. If I’ve paid the bank, should I also have to pay the legal holder of the note?
Come on - the answer to that is clear.
Just ask them to produce the ‘wet’ note as required. When they can’t asked them why they will either have to admit that they purposely destroyed and/or then used the shadow mortgage in a commission of a crime selling it mutiple times it mortgage back securities that are worth the paper they are written on.
There’s no judge going to over looked that the bank’s destoryed their own paperwork then used the fact that they had destoryed it in order illegally move/sell the mortgage.
That would be like giving a loan shark all the profits from his loans after he admits to loan sharking.