“Then the homeowners deserve what they get.”
Can you explain why?
They’re defaulting on their loans. They deserve to be foreclosed on.
BUT of course when it comes down to it, the bank can’t foreclose, because they destroyed the note and sold divisions of an electronic shadow purporting to be the note to multiple legal entities. The bank has no actual right to be the recipient of the mortgage payments anyway.
House-holders who’s wet-signature note has been destroyed should consider paying into escrow pending settlement of the note status.
And if it turns out that nobody holds the note then house-holders have little option but to consider a writ of adverse possession. I doubt they’ll ever get clear title in any other way - certainly not by paying their mortgage.
You don’t get delinquent in payments to cheat your way into a government bailout.