The banks really believe
d they could can do whatever they please, including taking homes they have no legal right to take.
If Citi doesn't own the mortgage then the woman doesn't owe them any money. If Citi doesn't own the mortgage then it isn't the case that "perhaps" they shouldn't foreclose on her, it's the case that they have no legal right to foreclosure. Citi can't just take possesion of a house, or decide someone owes them money, just because they say so.