I know of a family member that said she was 34 weeks pregnant with a 2pound stillborn and she said she lost her baby in the shower is this possible??

It's possible, but unlikely. At 34 weeks she would have excruciating pain, and she would have to know what to do to minimize blood loss after the delivery of the placenta.

It would be interesting to know how she disposed of both the fetus and the placenta. Something about this sounds very fishy to me.

Lastly, was she receiving prenatal care?

As J_9 asked... do you know any more details? She could have had baby in the shower at 34 weeks. Two pounds would be less than expected, but not impossible.

What are you questioning about her story?

I would agree, not a real believable story, but strange things happen.
She would have had to call for medical help and get medical care after.
So if in doubt there should be medial records