For whatever reason, banks aren't doing very well
with foreclosure sales. It could be because they're just the servicer and don't have any big interest in recovering the debt, or it could be they're just overwhelmed and don't have enough appropriately trained employees to handle it. In any case, what we see is a great willingness to lose lots of money in foreclosure sales but not a similar willingness to lose that money by lowering principal amounts so that people might have a chance to stay in their homes (recognizing, of course, that plenty of foreclosures are on investment properties).
