My first mortgage foreclosed. What happens to the second? I always thought that the property was the security for both loans. The first is having a auction in August. They will not get what is owed because it was loaned when prices were high. Thus the second will have no collateral. Can this turn into a personal loan where we are responsible for the entire amount? This home is in Oregon and we have moved to Nevada.

The junior mortgage holders lien was or will be vacated by the foreclosure court. Unless the second mortgage paid off the first mortgage the second loan would be removed from the chain of title. That doesn't mean they still can't actively try to collect the unpaid balance, it simply means they are not longer collateralized by the home. Some mortgage lenders might attempt to collect the debt, others may not. If you have assets or other real property they may try attaching a lien to these assets. Otherwise it will remain a charged off bad debt against your credit report.