The average foreclosure costs $50-60k. It is often cheaper for a bank to allow the delinquent payer to pay the teaser rates - and lose some of the interest - than it would be for the bank to foreclose and try to re-sell the property
I want the banks and the borrows to work it out without using tax dollars or credits. If it is truly contrary to the banks self-interest to foreclose, why should we worry about them foreclosing?