Any Mortgage/Foreclosure gurus?

My friend has been trying to short sale for 6 months with no luck. He bought high ($@225,000) and now its worth under $100,000. Its a condo and they're not exactly hard to find condos in our area.

On the flip side Im trying to buy for the first time with no luck of securing a mortgage despite my good credit because cause I cant afford to put 20% down on a $250,000 house. (which is a cheap home in my area.)