Watch out the banks are going to start foreclosing like gain busters now that the government imposed new regulations on them (we are seeing it already B of A is on a tear). My thoughts on the reasoning behind banks not caring is this; government backs them, they have insurance to cover their losses, and above all those who own the real estate have power over the underlings and with the new regulations limiting their ability to lend to financially incompetent people it limits their ability to take advantage of them. Their solution to that problem is as such; foreclose and take title to boot loads of real estate or offer deed-in-lieu-of-deed-for-lease allowing them to become slumlords keeping their control on 85% of the population.
Lending institutions do not make money on interest they make money on fees, they liked people that were in default until the market started to decline making loan values higher than market values, which in turn weekend the economy causing unemployment, more foreclousre, more declines and where does it stop?
Buy a home after foreclosure, short sale, deed-in-lieu-of or bankruptcy expert