I don't know much about Ann's situation, but it does sound very sad. I agree that banks and mortgage lenders really messed up badly, especially in the least 15 years.  I think that there were predatory loan processes, too.  

Paying her mortgage up does seem to be the wisest course of action to me.  Now if she could have the sheriff sale and the loan re-modified first that would be ideal.  I actually do believe that foreclosure is actually a reasonable remedy for banks to retain - but only after all other pathways have been tried.  It sounds like she really needs a loan remodification. At today's near zero per cent interest rates I'm sure that the bank probably isn't too thrilled about that and that might be why they are dragging their feet.  I would like to see more remedies for PEOPLE to appeal aggressive and predatory lenders' tactics.  Also, Jadiaz and Scott seem to be referencing the idea of moral hazard, that people pay a price for breaking deals.  I'd like to see a moral hazard in play for lenders who made stupid loans, or who "lost" paperwork, or made other mistakes.  Not that we liquidate all of their assets and throw them out on the street (like they appear to be trying to do with Ann in this case) but that they are forced to take some bitter medicine of their own, as in refinancing the loan under less attractive terms than we had for the housing bubble.   These are all just some ideas I have, I'm not sure how to put them into play and maybe they're not practical.  Then again throwing 600,000 Americans who can't make their house payments is not real practical, either. I say we get some legislation or simply that "moral hazard" cranking, get these issues resolved pronto and get this country back to work.  

A comment on Scott's comment:  Loaves and Fishes had been in this community helping people for around 30 years.  I have personally seen the work they do over the decades and I've seen the results of what they do, too. For at least the last 20 years I have interacted with Loaves and Fishes Community members weekly, if not daily, and I've seen first hand what they do. Yes, maybe there are some freeloaders here and there, that happens everywhere.  But by and large the L & F community members work very, very hard to serve, educate and mobilize our community members, especially the most vulnerable and at the times WHEN they are most vulnerable.  All they ask in return for this is that people continue to give them the opportunity to do the work by donating for basic needs for simple living.  I don't think that it is a scam, whatsoever.  I was personally a little offended with the tone of your comments, too, although you are entitled to your opinion and I am sorry if you feel as though you were treated unfairly in your time there.