Chain of Title Defects
Every assignment in the chain must be valid and complete — a single broken link destroys the plaintiff's right to foreclose.
Overview
Chain of title refers to the complete, unbroken record of every transfer of the Mortgage (or Deed of Trust) from the original lender to the current foreclosing party. Each transfer must be: (1) in writing (an Assignment of Mortgage), (2) signed by a person with actual authority, and (3) properly recorded in the county land records. A chain of title defect — a missing Assignment, an Assignment signed by an unauthorized person, a backdated Assignment, an Assignment to the wrong entity, or an Assignment that post-dates the foreclosure filing — breaks the chain. If the chain is broken, the foreclosing party cannot prove it owns the Mortgage, and the foreclosure should be dismissed.
Legal Definition
The chain of title is the sequence of historical transfers of title to a property, recorded in the county land records. For a Mortgage/Deed of Trust, each Assignment must be recorded to give constructive notice to the public (and subsequent purchasers/encumbrancers). Under the recording acts, an unrecorded assignment may be void against subsequent bona fide purchasers. In foreclosure, the plaintiff must trace its ownership from origination to the present — every link must be proven.
When This Defense Applies
Whenever there has been a transfer of the loan — which happens in virtually every mortgage that is securitized. A typical securitized mortgage may have 4-7 transfers: originator → sponsor → depositor → securitization trust (with multiple intermediate servicers). Each transfer requires a recorded Assignment of Mortgage. If even one link is missing or defective, the chain is broken.
Common Foreclosure Scenarios
Missing Assignment: The loan was transferred but no Assignment was recorded — there is a gap in the public record
Robo-signed Assignment: The Assignment was signed by an employee who signed thousands of documents daily without reading or verifying any of them
Assignment by an entity that no longer owned the loan: A party assigned the mortgage after it had already sold the loan to someone else
Assignment to the wrong trust: The Note and Mortgage went to Trust A, but the Assignment says Trust B
Backdated Assignment: The Assignment is dated months or years before it was actually executed — this is forgery if the signer falsely swears to the earlier date
Corporate Advances: The Assignment was signed by someone claiming to be a Vice President of 6 different companies simultaneously (a classic robo-signing indicator)
Burden of Proof
The PLAINTIFF must prove a complete, valid chain of title. The defendant can challenge each Assignment through discovery: demand the name of the signer, their authority, the exact date of execution, the consideration paid, and whether the Assignment was recorded within a reasonable time. A facially valid (recorded) Assignment is presumed valid, but the defendant can rebut this with evidence of robo-signing, forgery, lack of authority, or post-closing-date transfers.
Court Considerations
State recording acts govern: in race-notice states (majority), an unrecorded assignment is void against a subsequent bona fide purchaser; in notice states, it's void against a subsequent purchaser without notice; in race states, the first to record wins. Some courts hold that only the Note matters (mortgage follows the note doctrine) — if the plaintiff has the Note (endorsed in blank), chain of title issues on the Mortgage are secondary. Most courts require both: Note AND valid assignment chain.
Homeowner Strategies
Obtain a full chain of title from the county land records — trace every assignment from origination to the current plaintiff
Compare recorded Assignment dates against the foreclosure filing date — any post-filing assignments are red flags
Depose each assignment signer — challenge their personal knowledge, authority, and signing practices
Cross-reference Assignments against the securitization trust's PSA — if the Assignment date is after the PSA cutoff date, it's void
Present evidence of robo-signing patterns: the same signer appears on assignments for different lenders, as different corporate officers, in impossibly high volumes
Related Court Documents
Related Court Procedures
Frequently Asked Questions
Is an unrecorded assignment void?+
As against the borrower, an unrecorded assignment may still be effective (the mortgage follows the note). However, until recorded, the public record shows the old owner — which matters for junior lienholders and subsequent purchasers. In foreclosure, an unrecorded assignment at the time of filing is strong evidence that the plaintiff lacked standing. The plaintiff must either produce the unrecorded assignment (with a valid chain) or explain the gap.
How many assignments are typical in a securitized mortgage?+
A typical private-label securitization (PLS) mortgage goes through: Originator → Seller/Sponsor → Depositor → Issuing Trust. Each step typically requires an Assignment. However, many Assignments were never recorded — lenders kept them in-house or in MERS (which doesn't record individual assignments). The average securitized mortgage from 2004-2008 may have 3-7 transfers with only 1-2 recorded Assignments.
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