If an assignment of beneficial interest in a Deed of Trust is not recorded, and the foreclosing trustee acting on behalf of a new note holder (beneficiary) moves forward with an auction on the property, then there is a break in the chain of events that are meant to occur.

The new trustee cannot act as the new beneficiary who has never been assigned has no capacity to substitute the new trustee under the loan.

The Trustees Deed Upon Foreclosure that is recorded without tax in our State is a false tax declaration ("0" transfer tax [a kind of sales tax on deeds]), because the land is not going back to the foreclosing beneficiary of record, since the assignment of the new bene, never recorded.

The Assessor cannot appraise the property and reflect the new beneficiary as owners since there was no proper assignment, and it stays, in error, in the prior owners' name where it accrues annual secured property tax obligations against the owner in foreclosure, affecting their credit.  Furthermore, if the foreclosed owner moves and leaves a blight on the property, then zoning and building departments can effect fines and penalties in some areas that are posted against the assessed taxpayer (old owner in this case).

This is a worst case scenario, but it means that the people are defrauded when their Official Records have no integrity because financial institutions commit a form of gross negligence that is tantamount to fraud.