I think that it is perfectly fine for lenders to go after debts owed on a foreclosed home. If a person was living in a home but were not making payments then they owe the lender. The lender could have found another tenant who was able to pay but if the place is occupied then this is not possible.
Let's be honest, almost everyone in America is in so much debt that they are a slave to their job and their debts. Lenders are going to go after debts whether or not it is fair. No one said the world was fair. Banks want you to be in debt and quite frankly the government seems to want you stuck in a job you hate. You can either deal with it or revolt.
While banks and financial institutions need to take responsibility for issuing loans to people who probably couldn't afford it, the ultimate responsibility for debt lies with the people who signed the documentation and took the money. If you agreed to take on the debt, you owe the money back to the issuer. You owe what you owe in this life.
When people can not afford their monthly payments on the mortgage of the house, the house is usually foreclosed. Some would think that if the house is foreclosed on, then they would not have to worry about any more payments for the house. However, they still might have to pay off the rest of their mortgage loan. It is not fair for lenders to go after these debts, because they had move out of their house in the first place since they did not have the money for these loans. If the house is not owned anymore, then the debt should not be collected from them.