Now this could have a huge impact on the junior NPL space if allowed:The Supreme Court said Monday it will decide whether homeowners who declare bankruptcy can void a second mortgage if the home's market value has dropped below the amount they owe on the first mortgage... http://news.yahoo.com/court-consider-second-mortga...

on an Action is it true that if i pay the main Loan I don't have to pay the Junior Loan?

Not all lien holders may foreclose, that will depend on state laws, but as John mentioned, if you were to purchase a second mortgage you would have to clear the senior lien or the first, you wouldn't have to pay junior liens to the one you purchased, like a third position as it will lose it's lien status in the foreclosure sale.Generally, the classifications of liens are in priority, but there are other liens by statute which may take a higher priority or not be extinguished through a sale, such as tax liens, HOA liens, child support or court ordered liens depending on state law.

Greetings,I am a junior at the University of Kansas majoring in Chemical Engineering.

I had moved from a junior college to the university. 

If you buy a note on a home that has equity with no junior liens, then your capital should be preserved.

Junior lien holders (secured lenders with recorded mortgage or TD) may be wiped off title but have an interest in redeeming property if allowable in your state. 

In junior high, I started a muffins and juice business with my friend; we went door to door and signed people up to receive fresh muffins and juice each Sunday morning.

Are there any other junior lienholders on title??

Mortgage of course is wiped out and any other junior liens.Tax sales are the best for these types of scenarios.And especially when your talking such small amounts of money what is the risk you tie up 10k for 120 days ???...