It is important that you contact your bank and talk with the Home retention department. Remember that Banks do not want to be in the Real Estate Business! The banks also hate foreclosure. You can contact me directly if your bank will not work with you. We have some programs to help people avoid having a foreclosure on their record!
They need to contact their lender ASAP and start communicating about doing a MOD. The approval process takes on average 6 months but is not a guaranteed approval.
They could put their house on the market as a short sale while they wait for the modification to go through.