I am not a lawyer and would certainly suggest that you seek legal counsel but my opinion is that yes they can. To my limited knowledge in this area, the 2nd note holder can foreclose but to do that, they basically must 'buy out' the first lein holder. Most don't do that but they certainly have the right. Read through your loan documents & they should address foreclosures within them. Definitely seek legal counsel though as you are not best served in this forum.
Good luck to you!
Triangle Home Crew Realty