Do banks lose track of mortgages?

[Bob Chapin]

I came across a property that has been foreclosed on twice by the HOA. The bank filed a LP years ago, but no further action regarding a foreclosure has ever followed. The intermediate owner held the deed for about 4 years, it appears he/she was renting the property. The taxes are paid in full, but they didn't pay the condo fees. And recently it got foreclosed on again by the HOA. And now the deed is transferred to another third party. The property is a very nice property worth 300-400k, the mortgage was in the 300's. So there is clearly a reason for the bank to foreclose. I guess the second title holder could have contacted the bank and been paying the mortgage and taxes, but seems unlikely to me. So, i guess my questions is do banks ever misplace properties in the shuffle between assignments and loan servicers?