How can I help this person?

[John Kubala]

This is my first post, but I have been reading the forums and listening to the podcasts. I am really enjoying the excellent information here. Thank you everyone! I have not purchased any properties yet, but I have a friend who needs some help.

Here are the details:
She owes $77k on the property but FMV is only $74k
She is getting ready to walk away from the property and face foreclosure. A payment has not been made on the property since January.
The property needs around $5k in repairs.

What is the best way to help this person out? Is a short sale the way to go? The current loan has a very high payment of $869/mo when rents in the area only go for $797.

I'd like to help a person out of a bad situation. What can be done?

Thanks for your help in advance.

John Kubala