A broken chain of assignment is when the foreclosing lender cannot produce the Assignment to him.
For example, A Deed of Trust is signed by a borrower and given to "L-1". L-1 assigns the Deed of Trust to "L-2" who then assigns it to "L-3" who then assigns it to "L-4".
A valid Assignment will recite all of the previous Assignments and will read something like this,
"On this 22nd day of August, 2013, L-3 hereby assigns to L-4, all of its right, title, and interest in and to a certain Deed of Trust executed by B to L-1 on the 9th day of November, 2009 and which Deed of Trust was assigned by L-1 to L-2 by a certain Assignment of Deed of Trust on the 19th day of December, 2010, and which Deed of Trust was assigned by L-2 to L-3 by Assignment of Deed of Trust dated the 10th of January, 2013.
A "break in the chain of assignments" is when the above clause skips an assignment and goes from Lender-1 to Lender-3 and nothing is recited on how L-3 got the assignment which he wants to assign to L-4.
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