What loans were used to purchase the house
The loans that were used to purchase the home will be extinguished, and you will owe no money on them, in a non-judicial foreclosure. SO the first is wiped out,a nd if the second was used to purchase the home say on a 80/20 loan, it will be wiped out as well. If you took cash out or added the second later that will not be extinguished by a foreclosure
Get a copy of your Hud 1 closing document
Proof of which loans were used to purchase the house will be on your HUD 1 closing document.