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Question about a home equity line of credit?

ok i am speaking on behalf of my best freind. He owns a townhouse for 3 years. He took out a home equity line of credit last year. He had to use every penny to pay off some debts, before this he was getting killed with payments and could not make ends meet. The bank called him up and offered that line of credit program to him. They told him that he has 70k in equity. his first loan is 137 so his property value was 207. Now he has to sell his house, he is moving to a diffrent city and the appraised value is now 185. he was like WOW why this diffrence now it was valued at 207 last year. The realitor told him it was not, the value was at 180. so he has this diffrence now any suggestion what he should do. he is getting very worked up with this.

the mortgage for 137 has the first lien so they will get their money first
there won't be enough to pay the second lien but he will have to repay out of his own funds as no one is gonna get a mortgage on the house without both liens being paid first

I'm a loan officer and I can tell you that since the home is the collateral, financing will be based on the "appraised" value. My guess is that the value was pushed last year so the price was inflated. If the buying agent is ordering the appraisal, chances are that they will low ball the price. The converse is true if the selling agent ordered the appraisal. If you have the address, I can check comps and tell you what has sold nearby. Bottom line: Value is value. He has to be careful as to who is ordering the appraisal. Ideally, the appraiser should be an unbiased 3rd party. email me if you need further assistance. izcarrasco@yahoo.com
Basically he has negative equity. This results because of property values constantly changing. For a while, property values were up and rates were down. He basically had his house appraised, got the loan approved, and now his value has dropped. So he owes more on the house than it's worth. In order to sell the house, he has to come up with the rest of the money some how. I know you're probably thinking that there is no way and maybe there isn't. But this kind of thing happends when you are borrowing up to 100% of the LTV (loan to value) meaning you borrowed as much as the house was worth at that time.