Notes are not commonly recorded with the security instrument so the information is not available that much in public record.

The "MERs has no authority" theory has no legal merit, it does in fact have the rights that are transferred with the instrument.

As a function of the security instrument and note you can impound the monies to pay for both taxes and insurance and distribute accordingly.Or when you get listed on the property insurance you get listed as a mortgagee which most insurance companies will alert you when the payment is due and you can request proof of payment from your borrowers.

You will tend to have more recourse with an attorney if they prepared your security instrument and note opposed to a licensed mortgage person.

If they did, their security instrument would only cover 50% of the property.

Are most of these folks just making offers with no financing contingency, then tapping lines of credit or using other instruments to close these deals, or are they literally wiring cash from their checking accounts at closing?

I am still confused about all this because in my state ( massachusetts ) the security instrument used by lenders is a mixture of a deed of trust and mortgage.

Hi Josh - Is your intention with the review to establish that there are no legal issues with the language on the note and security instrument that would prevent you from pursuing a potential future foreclosure? 

Notify your Mortgagee of such things, there is a specific instrument template.  

ACCEPTANCE: This instrument will become a binding contract when accepted by the Seller and signed by both Buyer and Seller.