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If you sell the house in a short sale, that note just wouldn't be included in your bankruptcy because it would no longer exist. Any other judgments, liens, or mortgage notes would be included in the bankruptcy and would be discharged. A lender in the second position is just that they get paid second, if the first note is foreclosed on and taken back by the bank, they only get paid if there is money left at auction (which invariably there never is). They need to be included in your bankruptcy so they cannot come after you with a judgment.
All the homes and their mortgages would be included in the bankruptcy, and would be surrendered to the banks.