A soft second mortgage is a second mortgage typically offered by a city or parish that will be forgiven (i.e., you don't have to pay it back) if certain conditions are met. Here is the link to the Finance Authority of New Orleans' website, where you can find out the details.
You should contact her about the foreclosure date and discuss your concern with her. Asking us a "What should I do" before you talk to the other party doesn't happy your situation. Find out what she say says and then ask your questions.