So many people are wondering why banks just don't work with more of the distressed homeowners. This article explains it very well. Pay close attention to #5--it explains why it is more profitable for a bank to foreclose than to do a work-out.

http://realestate.aol.com/blog/2011/10/18/mortgage-prof-why-banks-foreclose-instead-of-settling-for-les/?icid=maing-grid7|hp-laptop|dl4|sec1_lnk3|105578