1- A possible loan modification with a professional attorney or they can do it themselves directly with the lender.
2- If lender rejects the loan mod, the other option is to short sell their house. I understand they would like to keep it, but it's a decision they have to contemplate.
Please have them talk to a real estate attorney with experience who could lead them to the best choice that they can live with.
S&S Investment, Inc.
Your family friend may have the option of a loan modification to help them stay in the home. They should speak with Bank of America and see what programs are available to them. Time is of the essence when payments are missed. I would need more details of their situation to better assist your friend.
Redlands Real Estate Guy