Foreclosure Question

My friend is currently the target of a forclosure but there are a few things thay I don't think are right. This is in PA.

My friend missed some payments on some income property that he was going to sell. He was in talks to sell the place to a prospective buyer. He was then going to pay off the loan with the proceeds from the sale. However, the bank posted a foreclosure notice in the local paper. Once my friend saw this he went to the bank with a significant sum on money. The bank said they would stop the foreclosure and took the money. At the same time, the prospective buyer saw the foreclosure notice in the paper. The prospective buyer went to his bank in an attempt to cut my friend out of the deal. The buyer signed an intent to buy with the bank. The bank proceeded with foreclosure.

Here are my questions:
1. If the bank accepts payment after forclosure is started can they continue foreclosure?
2. Are there any other issues that can help my my friend out that I am missing?

Thanks
Delgato