Legal Question in Real Estate Law in California

If the second was secured by the property, which normally is the case, the bankruptcy would not have effected it as it is only as to unsecured debts. How has the second been charged off? If they have not agreed to drop their lien [why would they if they do not get paid something for it?], it still exists and you would be assuming it on purchase of the property.

Mr. Shers' answer is completely wrong. Bankruptcy affects both secured and unsecured debts, though the rights of the two types of creditors are different. If the first was more than the property is worth, which if you have a short sale by definition that is true, then the second could very well have been discharged in a bankruptcy, if the bankruptcy was done right. Without more information about what exactly the seller did wrong in her bankruptcy and other details of the case, however, it is impossible to give you any useful advice.