Sheriff's Sale in Pennsylvania

[Kristen T.]

Background:  We own a few rental properties, some being right next to each other on one road.  Our commercial property we rent back to ourselves is one of them in this strand, so we know the surrounding neighbors fairly well.  We've known since 2015 that one neighbor, next house in line,  would be foreclosed on at some point.  This neighbor told us he stopped paying his mortgage and would let us know when he was foreclosed on, b/c we have an interest in protecting our other properties, among some other things. 

Well the time has finally come, he called today and told us his house was going up for Sheriff's sale and gave us the date. I called the County's Sheriff's office and real estate division and they actually gave me a good bit of info how this will all work.  But of course, what he can say or teach is limited (he said anyway) so I'm left hanging.  I know we need someone to do a thorough title search for other liens and judgements and tax delinquencies.  But he said the successful bidder assumes all debt, including delinquent taxes and the mortgage.  I know for a fact this man is so upside down in his house it's unbelievable.  He refinanced 15 years ago for so far over the value, I don't even know how.  So let me say, all other things aside or being "ok", this house is worth about 25K.  The current mortgage is 75K (really rough numbers).  Does the successful bidder assume that 75K plus what they bid?  Or did he mean any additional mortgages, if there's a 2nd, 3rd, etc?  I would think this defeats the purpose to assume the mortgage of the mortgage holder who is foreclosing?  He did tell me that the representative from the bank would be the one to open the bid.  So if no one outbids them, then they own it still, correct?  Basically that opening bid is a reserve?

Another investor I talked to earlier today wasn't sure on that, but they said what they personally do, is let the bank buy the home, and then they go to the bank and try to purchase the home.  How do you buy from a bank?  Do all banks have a real estate division that do this?