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You can discharge the second mortgage in a Chapter 7 Bankruptcy, but you cannot have the lien removed in a Chapter 7. The discharge will remove your liability to pay the second mortgage, but you will not be able to Short Sell the house - unless the second mortgage company agrees to remove the lien. (Sometimes you can get the first mortgage company to pay something to the second mortgage company in exchange for removing the lien.)
You can only have the lien removed at the end of a Chapter 13 Bankruptcy, which is up to 5 years after filing.
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