The short answer: No, if you buy a house at a trustee's sale (auction) than you own it free and clear, all the other lien-holders are out of luck.
The long answer: There is a difference between a short sale and a foreclosure. The short sale price is simply a price the real estate agent hopes that the bank will approve instead of going through foreclosure. If the short sale is unsuccessful than it will move to foreclosure. The foreclosure price is set by the bank, and the price may not be attractive, as it may still be more than the home is worth. If nobody buys it at the trustee's sale, than the bank owns it and will sell it as a bank owned property through a Realtor at fair market value.
Hope that helps. If you have any other questions feel free to give me a call at 801.376.2709... more