I see a title claim afoot here. I think it's pretty safe to say that a hapless title closer got some acknowledgements mixed up and recorded with the wrong mortgages. Those folks who are named on the acknowledgement are probably making monthly payments on an unenforceable mortgage themselves.
The major lenders all use origination software that automatically populates the information into the loan documents. I'm sure that includes the acknowledgement.
Whether or not my guess is correct, the title insurance policy insures an enforceable lien. This lien was judged unenforceable, and thus avoided in the bankruptcy.
I still think the lack of notice thing is a bunch of bull, however. The lack of notice argument is based on theory, whereas the fact is that the mortgage was recorded, thereby giving constructive notice.
Theory trumps reality in this case.
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