Late payment questions?

I financed a motorcycle for my friend under my name about 2 years ago (I have regreted it ever since). anyways...i have had no problems until this last december when my friend lost his job and has behind on 2 payments so far. im going to call the lender and try to set up a payment plan for making up the last 2 payments. just curious.. is there any chance that the lender will ignore the late payments if I tell them I lost my job and I call them about the payment plan before they call me?? we are planning to sell the bike and pay off loan for the bike ASAP. my credit before this all happened was very high, 703. how much will being behind affect my credit? and won't it also improve after I pay off the loan? or how would that work? i also dont plan on getting another loan or need to use my credit for at least another 2 years. will the late payments affect my chances of a loan at the earliest of 2 years later, such as a new car?? thanks.