When first loan already sold at auction then how come second loan is foreclosing the same Property

I was following one property in Gilroy and it was sold for $160k last month at the auction.? Yesterday same property was for auction from the second loan for $62k.? Property?postponed to Friday 7/10/09. How come second loan is going to foreclosure the same property when first loan already sold at auction.? Property is already transfered to the new owner who bought at the auction last months.

Sometimes the second simply doesn’t realize the first has foreclosed. Even if the sale goes through it won’t affect ownership and the after the fact sale of the second will end up overturned.