Tina,
belive it or not,dogs have found their way back home from greater distances,,so anything is possible..
The ones that spook easy or tend to be shy around strangers and strange sitations require more socialization and exposures.. but if it is naturally in them, they will priobably always tend to maintain some shyness.
A good measure is not so much how much they spook or react, but how quickly they recover from it.. and adjust their behavior.
One of my pups is simialr.he is very bold and courageuos at home,with our dogs, on our property, but when he goes away from this, he gets shy.. I trust he will grow out of it for the most part, but i think he will always maintain some form of the behavior..
I have had him stay with family, brought him to parks, the vet, pet stores, etc... but his confidence in these situations is not ideal.. so it takes time. but i belive they can overcome it. he will being staying with family next wekeend for the holiday, so I hope this will help improve it more. I have even been looking into a dog walker, to come and care for the pups when i am away at work, walk them and play.. it helps and they are never too old to change..they just may take a little longer...
Good luck, i hope you find him..