I keep saying this, mold takes water has the leak from the plumbing, roof fill in the blank been stopped?

@Dan Oconnell Strictly from the numbers, if you borrow at 5% and invest in something that makes you 9%, you are ahead by 4%. 

The borrower had 650+ credit and the loan to value was 75% (closed with no income verification by the way). 

That doesn't stop someone from jumping through all the hoops to get a showing and then spring the "oh I just saw you don't allow pets, I have an 8 lb [piss and poop machine] that is very well behaved, do make exceptions?"

After the crash they let the prime money pump it, when that runs out they let the average money pump it, when that runs out they let the subprime money pump it..If you are a prime borrower, great, you get to buy the dip right away..

What stops them from just choosing the contract that is willing to escalate the highest, and then countering that price?

It's like time stopped. 

Depending on loan terms you may still have a claim against the borrower, but you will no longer have a security interest in the property. 

@Shawnette Ashburne, I might also add stopping a foreclosure is something very niche.

In the good ole US of A nobody can stop you from owning 6 cars.