Legal Question in Real Estate Law in Pennsylvania

Re: Auction

An auction results in the highest bidder buying the property for the bid price. Usually, the creditor [to whom the debt is paid] will bid up to the amount it is seeking to recover, which includes the debt, legal fees, costs of sheriff sale, etc]. After the bidding gets to that point, if others are still bidding, it keeps going.

The winning bid will get the property free and clear of the creditor for whom the sheriff's sale will be, but if there are senior liens [older liens such as judgments or mortgages] they will remain on the property and the winning bidder will take title subject to those senior liens.

It is important to get a title search before a sheriff's sale to see what liens exist and what their status is relative to the lien that is going to sheriff's sale, for that reason.

Also, it is safer to consult with a local real estate lawyer to advise you of what your risks are in bidding at a sheriff's sale, and how you will complete the purchase.