Foreclosing from 2nd position, how does that work?

[Tim S.]

I read "Performance Anxiety", I found it very informative.  One topic left me with questions however.  When the 2nd forecloses what happens with the 1st?  Does the 2nd have to buy out the first? What are the various scenarios?  What actions are the 1st likely to take?

I've searched for answers, but having trouble finding them. @Dave Van Horn I'm sure you'll have a good answer.  Not sure if I'll be able to make your call tonight. 

Thanks