WHAT ACTUALLY HAPPENED.

The following diagram shows what happened to most mortgages.

It is important to understand the three (3) important documents in a property transaction: 1) the Promissory Note (the promise to pay the loan); 2) the Deed (title to the property itself) and 3) the Mortgage or Deed of Trust (allows lender to take property as payment if you default on the Note).

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The mortgage should follow the same path as the Note. In most cases they don't causing the securing property to become separated from the debt. The mortgage is no longer secured. The mortgage may still exist and still be owed, but to WHOM? Probably not who is claiming to own it now.

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