Just out of curiosity, why is your friend allowing the home to be foreclosed on? Depending on local laws, when a home is foreclosed on, the bank can still get a judgement against the homeowner for the balance of the loan, plus legal expenses. They don't just get out of the loan scott free. Has she considered trying to sell the home through a short sale? Your friend and her real estate agent can get the bank agree to waive the balance of the loan in most cases and save a significant amount of the credit score hit that foreclosure would cause, not to mention getting into a new home 2-3 years sooner.
I would recommend contacting a local agent who is familiar with the short sale process if she has not already. If she does not know of anyone in her area, feel free to give me a call and I will be happy to refer you to an aquantance of mine in the upstate NY area.
It's more than real estate. It's RAYL-Estate!
Keller Williams Elite - Dallas, TX
Your friend needs to make sure she answers the summons and complaint and avoids a default judgment. She needs to retain a foreclosure defense attorney, who can either prolong the process for up to several years or negotiate a settlement with her lender.
If price is an issue, or if she wants to optimize her likelihood of an ideal settlement, she should reach out to us.