With a house going into foreclosure, what can the first and second mortgage companies do?

If a home is going into foreclosure, the first or the second forecloses on the security and then takes title to it. Assuming the loans foreclosed upon with respect to the security are not purchase money or the proceeding is not a non-judical foreclosure, then the lender could file a lawsuit against the borrower for a deficiency judgment which would be the difference between the amount of the loan and what the property was bid upon at the foreclosure sale.

The result is that the borrower loses title to the home and could end up owing money on the loan or loans.