Legal Question in Real Estate Law in Pennsylvania

Buying RE via sheriff sale

A property with $4MM in liens could potentially go to sheriff's sale in PA. The house is currently listed with a realtor for $400,000. The seller wants to walk away with $250,000 plus atty fees(unrelated to sell of house).

1.)Can the house be sold on the market even though it has $4MM in liens?

2.)If sold, do these liens become the responsibility of the new buyer?

3.)Does the process of sheriff's sale absolve the new buyer from any responsibility to the existing liens?

This is a great house in a great location, a low ball offer could be made prior to sheriff's sale or at sheriff's sale but I need to know what will happen to the liens on the property or what my role as new buyer would be with regard to responsibility of the liens?

Thank you in advance for your courtesies.


Asked on 6/13/05, 5:24 am

1 Answer from Attorneys
Mark Johns Mark Johns, Esquire

Re: Buying RE via sheriff sale

If the property is purchased at sheriff's sale and the reason for the sheriff's sale was to foreclose the first mortgage then any subsequent mortgages could be extinguished. If you pay cash for the property and take the deed the mortgages and liens would still be on the proerty but you would not be personally liabel for them. One option you may wish to consider is negotiating a sale price with the party foreclosing on the house. Obviously I have not seen the recorder of deeds file on the property and would need to examine such to advise you further. On a purchase of this size I would recommend you speak with a lawyer prior to making any offers for purchasing the property at sheriffs sale. I offer free consultations.

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Answered on 6/13/05, 9:08 am


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