Do Banks Prefer Foreclosure?

Apparently they do and I don’t just say that because of the article below.  This has been very apparent by their actions throughout this housing crisis.  I understand why the article states this but banks lack common sense and I could go on for days as to why I say this.  The part that they leave out is that 60% or so of the modified loans end up in default again because the modified payment is higher.  See, that makes no sense. 

“Policymakers often say it’s a good deal for lenders to cut borrowers a break on mortgage payments to keep them in their homes. But, according to researchers and industry experts, foreclosing can be more profitable.”

http://www.msnbc.msn.com/id/32181495/ns/business-washington_post/