That was one heck of a run on sentence! Under your scenario:
1) Countrywide made a mortgage with Mr. Jones,
2) Countrywide then sold the mortgage, but when they sold it they did not sell the right to foreclose they just sold the cash flow,
3) then BofA bought Countrywide...
Then BofA retains the right to foreclose. BUT they don’t seem to have cause to foreclose since they have not be harmed. So they cannot foreclose. They need to sell/transfer the right to foreclose (not sure if that is the title or the lien or what) to the person/investor who bought holds the right to the cash flow from the mortgage. Presumably the buyer and seller both wanted to sell that right, they just a) screwed up or b) could not figure out how or c) legally could not. If a or b, they can fix it by moving the title/lien to the current holder of the mortgage.
The problem is that the secualized moeny was put in one big pot. World Wide investor brought 1 billion, Intercontinetal brought 500 Million, and Acme Investments brought another 500 million, but Countrywide never tied Mr. Jones Mortgage directly to any of these investor they just collected the money from Mr. Jones and maybe this month some went to Acme and the next some to Worldwide and so on and how could countrywide sell the right to foreclose to BOA when they had been paid off and in no way harmed. Also how do you Identify which of the three investor’s money actual went to Mr. Jones’ loan? And how do you legallu prove it when ther was no recording of a assignment?