Not an urban myth at all, although I agree it is quite a "cheesy" strategy to delay the inevitable.The fact is, many have done this and since borrowers originate their loans with one lender, then it is sold to another and another, paperwork is misplaced, not transfered properly or timely, etc and the documents are not organized and readily available.

You are not wasting time/gas driving back and forth to cut keys if a guest, housekeeper or maintenance misplaced it.

I seem to have misplaced/deleted it?!?

I have a tenant who recently told me a contractor of mine “stole/took/misplaced” a phone charger of theirs.

People like to malign us sometimes--and my misplaced anger and bad advice early on in this thread didn't help.

I am not new to the site, unfortunately haven't been here in over 5 years and seem to have "misplaced" my account!

I actually did receive an impressive one several years ago, but unfortunately misplaced it.

We have somehow managed to mis-place the file that had all the loan docs!

Assuming the mortgage servicer eventually gets the misplaced principal payment, you will have overpaid the principal of the mortgage when you make the supplemental monthly payments, and the mortgage servicer should return that extra principal to you, without question, when they ultimately close the books.The mortgage servicer will not return the interest portion of your payments, and in fact some additional interest may be due when this is settled, despite your ongoing payments, because the interest is collected in arrears.  

Much of your fear is misplaced- insurance is there for a reason.If you are serious then scout out a property manager and sit down with them, let them explain what they can do and how much they can rent for.You are in a nice area, each year you hold onto the property you will get a little cash flow and some nice appreciation.