“Ambulance chasers.” You nailed it. They have been the driving force on this nothingburger since day one, and they are exploiting the insane and their fears.
IMO, the first thing the judge should establish is whether the mortgage is in arrears. If someone is contesting the Foreclosure simply ask them to produce a payment history.
Once it is established they are in default TO WHOMEVER owns the mortgage, place the contested asset under the custody of a receiver and evict the dead beat. The receiver can propose to rent the property back to them, under court approval, and if they default on rental, they are in contempt of court...evict. Meantime, out of the rental, escrow taxes and insurance, pay yourself a management fee, escrow the difference and try to determine who the rightful owner is under the conservatory.
The banks are not in any rush to have these foreclosures go through because from what I understand, the authorities are allowing them to keep the mortgages on their books at full value. Once they are foreclosed and the property sold, they know they will take a hit.