Foreclosure- Who takes the loss

[Matthew Haussmann]

I've been trying to find out who takes the loss on a foreclosure. Every answer I've found seems suspect. If anyone could help I would appreciate it. Here's the situation: I found a property that went to foreclosure with $131,000 owed on the loan. The property went to auction and did not sell. Another bank then bought the property for $72,000 and listed it for $131,000. The price has since dropped to $119,100. My question is this: If the second bank bought the property for $72,000, who took the $59,000 loss?

Appreciate the help.