The reason being that that posession is not “adverse” in the sense that the person was living there with permission in exchange for rent.
Adverse possession, generally, comes into play with property line disputes, and sometimes with genuine long term squatter situations.
A core and often overlooked element however is that a license or permission to use the property means you aren’t possessing it “adversely”.
Or, maybe you just pay someone to "find" the documents, and hope the leinholder doesn't notice or doesn't care. This case seems murky enough that even a potential recovery of $1M might not be worth it for the leinholder.
Statutes enabling such suits are custom-tailored for removing clouds. If the lenders don't have their paperwork in order, the judge can sever the mortgage from the note, turning it into an unsecured debt.