“They do have clear title. They simply have digitized the paperwork and misplaced the hard copies.”
No they don’t. In some cases they have digitized paperwork, which is not compliant with local laws.
In many cases they don’t have any paperwork except the mortgage. Only they can’t even prove they are the legitimate owner of the mortgage because those were all lumped together and shuffled around.
I assure you they have a legitimate lean on the property.