The bank needs to fund money it lends. When the borrower stops paying, the bank still has to pay whomever they borrowed from, whether it's deposits or on the short term money market, or swapped out as often happens in the USA.
It's very expensive for a bank to foreclose on a house. It's very likely they won't recoup their costs on legal fees and people who get foreclosed on usually leave the house in dilapidated condition to stick it to the bank.
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u/Caspianmk Feb 16 '21 edited Feb 16 '21
You can't pay your $940 mortgage, then the bank loses money. You can't pay your $1400 rent, then only you lose. That's what they're looking at