Tracy the original loan could also have been with one of the lenders that closed and FDIC has a loss share agreement with the current bank. If the property goes short they may get less from FDIC. If they force it into forclosure they get compensated fairly well for the loss. FDIC even picks up the forclosure costs and property taxes while the lender is reselling the property.
Here is a link to the FDIC Q&A area on loss share. According to their numbers we have a future loss of only 80 billion!