All I know is North Carolina Law. You can't get foreclosed on without a hearing. At the hearing, the homeowner is entitled to challenge the note holder's acceleration of the debt. In my state, someone like Ann would not lose her house if she was current on her debt.
Without boring everyone with the details of loan servicing and assignments and such, suffice it to say that the real money made in mortgage loans is in the servicing of the loan: i.e., the collection of the monthly payments. The interest paid accounts for the cost of funds in the beginning, for the initiation of the loan. What was once a relatively certain market, the home lending business was ruined by the thieves at Freddie and Fannie, taking their huge production bonuses in legalized theft.