Whay aren't banks approving more home loans on foreclosures?

With the foreclosure rate at an all time high. Especially in California. Why aren't the banks being more helpful to get these homes sold? I realize they have been burned by the foreclosure. It was their deceptive tactics that got them there in the first place. I would think they would lower rates, lower prices %100 financing and approve loans for people with good credit. Instead of accepting customers with excellent credit. There are 2 homes on my street that have been vacate for a year. Is this what they bank want? They are already out money. Leaving these homes vacate isn't putting money in their pockets either. What gives?