Hi Fred I think I have seen you around.
As mentioned below, If the bank takes possession, the borrower may get a cash for keys deal. If someone else buys it, they will be out very quickly. If it were my customer, I would advise her to consider a chapter 13 to stall the sell as one of her options. If the NOD has been filed, her credit is ruined for a while anyway the chapter 13 would not hurt. It really depends on her position.
Keep in mind, some lenders got a sweet heart deal from the Government, buying the mortgages at 70 cents on the dollar, and having them insured to 90 cents on the dollar. Only the politically connected like George Soros got those deals. These lenders make more money if your client defaults. Very corrupt really.