I can vouch for this as well. I tried to buy a foreclosure house, owned by Wells Fargo. After 6 months of placing a good offer on the home, and trying to find someone that CAN sell the home, I gave up. It was a shame, I think they eventually took less than my offer. I just couldn't wait around any more.
They obviously didn't care if they lose money or not. I initially thought they were just overloaded with foreclosures, but I now think they were just incompetent. I'm sure they can operate for quite a while using government funding.