Does a sheriff sale clear all liens?

[Joshua Cetnar]

What liens survive a sheriff sale?

This is my first foreclosure property, so I just wanted to confirm the details. I already went to the prothonotary and checked out the liens on the property, and the only liens are taxes and an unpaid mortgage. I'm looking at a property that I'm estimating has an after-repair value of $150-155K, and it has a judgment of $147K against it. If I go to the sheriff sale at the courthouse and bid $120K, does this go towards covering all of the liens in order of priority with the lowest priority lien-holder left taking the loss? Or would my bid go to the bank holding the mortgage, and the property/federal tax liens get placed on the house to pay after the sheriff sale?

I assume the first scenario is true. Also, are there any other liens that would not show up at the prothonotary's office during a search that I should look for? 

Any other general advice regarding foreclosures is greatly appreciated!