FLU: Even if the bank has a legal basis for going after these deadbeats who strip a house, the bank may still prefer to “bribe” them to leave the house intact.

For one, the bribe is cheaper than legal fees. And two, these deadbeats hardly have any assets. Any money they get from selling the kitchen sink, etc., will simply go to consumption or paying credit cards. Again, even if the bank can sue them for damaging the collateral (the house), it may be better to bribe them prior to taking the house over. If the house has already been stripped/damaged, then again it may not be worth for the bank to sue these asset-less people.