The investors who hold the RMBS force Countrywide (now BofA) to buy back the note. By doing this, the note and the mortgage are re-convered in the same party, and the lender who holds the title chain has a deficiency that allows them to foreclose. It seems very simple to me. Just force the banker who is last listed on the deed to buy back the mortgage.
I can see how that would work, but if the bank fails before the Investor can force it to do the buy back? If the Bank has sold the same mortgage to more than one investor? or as in some cases the bank has ‘pooled’ the mortgage and bank no longer knows exactly which secureity has claim on which mortgages?
But you way seems the most legal, but how may years and how many law suits before it would all get settled?