After all, a continuing rash of foreclosures ultimately hurts everyone...neighbors, home values, future home builders and yes, even the banks. Taking possession of hundreds of thousands of homes (and the insurance and taxes that go with holding the property) is not smart banking.
Most folks will do all they can to stay in their homes. The banks have gotten so big, the left hand does not know what the right hand is doing. Mass foreclosures is simply stupid and, ultimately, financial suicide for the mortgage holder.
If the judges hold the lenders to the letter of the law, maybe reason will return to banking. The small banks, where there is still some common sense in lending, never suffered the way the way the big boys did.