My friend would like to know if he contiue to pay his first Mortgage and not his second ,
Can the they close on his house?

He needs to check with the bank he's with. Banks don't like to foreclose on people because they don't always get all the money back, sometimes you can organise a deal with the bank that they will extend the time for the loan from say 30 to 35years meaning that your payments are smaller.
Or they may let him just pay off the interest on both houses and not the premium as well.

If he can't afford the house he should sell or work out something so that he can afford to keep it. If it doesn't look like he can than he can't just pretend its going to get better on its own.

Good luck to your friend :)