There is much that your friend needs to do and do quickly. Servicers, especially Litton, are notorious for reneging on modifications. I have often wondered if Promissory Estoppel could be as a defense against foreclosure when the servicer offers a modification based on the specific performance of the borrower. I would invite others to chime in on this one.
Unfortunately you haven’t presented enough information that would allow anyone here to offer specific advice at this point.
First, in what state does your friend reside? You need to know if it is a judicial or non-judicial foreclosure state. Then we need to know exactly what was received - a notice of default/acceleration or a foreclosure suite. Lastly, I hope your friend has saved every scrap of paper received from Litton, and has taken copious notes so as to fully document that he or she fulfilled the terms to qualify for a modification.
Have your friend create a detailed chronology of the loan beginning at the settlement date.
The best advice at this point is to consult a lawyer. If one can not afford a lawyer then search for local legal assistance organization that may be able to help. DO NOT contact any commercial foreclosure prevention companies, they are all frauds.