I always feel like the common man who owns the property gets lost in these discussions.  His (or her or their) house is being lost, but the only parties we discuss are large institutional lenders and their captive trustee firms. 

  In this nonjudicial foreclosure state (California), the trustee is agreeing to act essentially as a neutral party to ensure the fair execution of the lending contract on behalf of both parties, borrower and lender.  The trustee will reconvey a paid mortgage if the task is warranted.  The trustee will foreclose on the  land if such is the need.

  In both cases (recon or foreclosure), the trustee has agreed to be paid for following strict and specific code guidelines as to how such things are done.  Filing requirments as to form, format, data and timing must be met..  When those procedures are not enacted, it is against the rights of both the lender and the borrower;  either to be secure in their property rights.  A wrong action by MERS in a foreclosure holds the potential for a property to be litigated at high cost.  A failure to reconvey a loan may prevent a land owner from selling or getting a loan or credit.  Both are significant effects on people's lives.

  In the case of the bank being "hurt" the pain is not expressed in corporate sadness, but in lower dividends and stock value for investor / shareholders, and a higher liklihood that an employee will be out of a job sooner rather than later during hard economic times (admin rarely feels such a pinch).  Also, consumers will ultimately bear the cost in higher rates and taxpayers will bear the burden in corporate loss writeoffs. 

  All in all, I'd encourage us to keep in mind the home owner who has knowingly signed loan papers and has a right to a proper process without flaws and errors.