Quick trust deed question

[Brent Sander]

Hello BP Community,

I'm learning how to evaluate foreclosures and have a quick question about the trust deeds affiliated with the property. I'll try to lay out the information simply, then ask the question.

House was purchased for $565,000 in 2004

Original loan for $423,750 is foreclosing and selling the house at auction next week

There is also a junior loan from 2014 for $567,848

My question: Is the junior loan a refinance? If so, wouldn't the senior loan have been paid off and no longer have the right to foreclose?

I'm curious why a house that was purchased for $565,000 would have over $900,000 in loans. What am I missing?

Thanks!