It will depend on the terms of your mortgage documents. A part of my practice is focused on foreclosure law, and also confirmation law. See Http://www.confirmationlaw.com .
Depending upon the terms of your loan documents, and if the lender did not confirm the first foreclosure sale, then they may not be able to sue you on the second mortgage. But, the debt is not generally "forgiven", and the lender may still be able to foreclose on the second property.
I suggest that you have a foreclosure attorney review your documents.
- Jim Fletcher
It is unclear whether the foreclosure was upon the authority of the second loan/lien or the first.
In MO, a foreclosure by the first forecloses the rights of the second.
Consult the GA lawyer who wrote on this forum--sounds like a good guy &atty.