Friend Needs Short Sale Help!

[Ibrahim Hughes]

A friend's house is going to foreclosure and he's doing a short sale. There's a 1st mortgage for $340k (foreclosing lienholder) and a 2nd for $37k

The first says they'll agree to $109k and only allow $3k to go to the 2nd. The 2nd wants him to either be responsible for the remainder and make payments for the next x number of years OR pay 60% of the $34k at the closing (which he doesn't have).

Are there any other options out there for him?

Thanks in advance.