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Our landlord had 6 properties in foreclosure (including ours) for 4 years. Why didn't the bank repossess the houses?

Me and my family lived in a home that was being foreclosed for 4 years from 2009 to 2013. My dad has explained that the owner of our house owned 5 other properties that she was also renting out and were also in foreclosure, so she was making a lot of money by taking in rent for properties that she wasn't paying mortgage for. He said that she was exploiting loan modification policies that were passed by law during the recession, and that's how she managed to not pay a dime on 6 mortgages while also getting rent for 4 years.

I was wondering if someone who knows more about real estate and foreclosure could explain to me what exactly she was doing. How could she not pay mortgages for 4 years? Why didn't the bank repossess the houses? Would she have had to pay back the bank?

We lucked out from the shady situation personally, paying far less in rent than was typical for a house with that size and location, but she managed to stretch a foreclosure process over 4 years (or more after we left). We would get foreclosure notices on our door every couple months, and people from the bank would come and inspect the property for appraisal, but the bank never took the house. She also didn't pay the HoA fees, and neighbors were surprised that we were allowed to have keys to the community pool. It appears the house was in foreclosure long before we moved in, the way the neighbors talked about it. We ended up being evicted for failing to pay rent, and the owner showed up in her Mercedes and designer clothes with the sheriffs to kick us out. It's clear she was living quite comfortably for someone with 6 properties in foreclosure. My question is, how?

submitted by /u/Danielnrg
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source https://www.reddit.com/r/RealEstate/comments/ik8aab/our_landlord_had_6_properties_in_foreclosure/
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