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Its pretty funny how many people sided with the squatter. You have to know that he wont be living there long term. Im guessing that the reason this has persisted is because the foreclosure was not completed. The owner probably fled when they received notice of intent to foreclose. Otherwise this would be sitting in an REO department with some BS property management company handling some basic upkeep and keeping the property secured via lockbox etc. As far as it being difficult for the mortgage company to kick him out... its really not. Worst case scenario they bury him in paperwork and legal fees and he breaks. The courts really arent in his favor at all though.
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