My sister-in-law worked in the foreclosure dept at a bank in Ohio. She said under the newer rules people are able to stay in their house for months, even over a year without paying anything on their mortgage after the bank forecloses. A lawyer can stall the process for a long time, and during the entire process the borrower has to pay nothing.

I don't think the bank can confiscate anything except the house, only the courts can take liquid assets.

If your friend has enough money in the bank to worry about it, why didn't he just pay his house payment?