How does a foreclosure work with a first and second mortgage?

My ex-husband was granted our house in the divorce. There were 2 loans. (The first and then a construction loan, but they called it a second) He never refinanced and stopped paying the second mortgage, The paperwork states we are liable for the deficiency. The first mortgage is for $ 165,000 the second is for $ 45,000. Am I understanding it correctly that the first mortgage buys out the second in order to foreclose? The house is probably only worth $ 125,000 at the moment. How do they determine the deficency.
**Just a side note I tried for 1 and 1/2 years to get the house back in my posseision to save it from foreclosure and the judge kept giving him more time. Now it’s to far gone. This really sucks! But, I think I’m correct in assuming that collection agency can not collect from me, being that I am a single mother with 3 children.(Pretty, sure I fall under some kind of income guidelines) and the fact that he makes $ 80,000 and only has one child that he does not have custody of.
I did insit my name was removed. It was even court ordered, however, the judge did nothing to him for not refinancing.. I tried.

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