Lol, the bank has defualt insurance that protects there loans on houses with less than 70 percent of equity. Along side with some other loan backer. The ploicy cost comes out of the note. In order to file they have to call the note due. Which is how you end up court. They cant file on property they dont own. So they clear the owners from the title. Sell the asset and the insurance covers the balance. Unless you want to. They loss nothing; but the more bad notes the higher risk the banks are so unless the banks lawyer doesnt show up. Best just to let them bid as much as they want to on there on stuff.