You can try to do a loan modification but sadly they are very difficult to get done and even if you do get approved, a fair amount of time the modification the lender agrees to isn';t really helpful.
If they have equity in the home, they should consider selling it so they don't lose the money. If it turns out they don't have any equity, they sound like they could be canidates to do a short sale. You can potentially find help at http://homeownership.wa.gov. I do quite a few short sales if you want to ask any questions. I can also recommend a real estate broker who is a short sale specialist in your area.... more