2nd mortg foreclosed while negotiatiing short sale

Hello all, I have been negotiating a short sale with 2 lenders the 1st one is ready to give me an approval, I just call the 2nd and they are telling me that they forecloused yesterday. I asked who is in charge of the property they said that nobody that they closed and charge off the acct. Can you please tell me what can i do next, i'm very confuse. Thanks. Sair