Him getting to stay in the house for a year is due to the lengthy foreclosure process, a legal artifact, not due to any compassion on the bank's part.

I'm confused why you're using the word "compassion" at all, and coaching your argument in terms of how "compassionate" banks will be in their terms next time around.

Banks exist to make money, the terms they offer are a balance of how much risk they are willing to take, how much return they can earn, government regulation, and competition.

The OP does not owe the banks anything other than the terms of his contract, and the terms say that if he doesn't pay his mortgage he'll lose his house.