Get your stuff off the property, then who cares if it is extended or not. This has a good chance of happening, and it is alot better to start looking now then when you have a 24 hour notice. DOnt rely on a banks kindness to a friend to protect your stuff.

As for your friends loan mod, if he isn’t in the black right now, and I mean able to afford his house pre-bubble without problem, then he wont get the mod no matter what. Why would a bank modify a loan when that person has no chance to repay the loan. That is regardless of what the property is actually worth. If they know he cant afford it, why shouldnt they try to get whatever principal they can back and call it a loss? What does strining it out hoping he gets back on his feet do for them?