Sheriffs Auction - Someone else purchased the house after I won - Business Strategy

[Dan Mack]

I recently won a sheriffs auction on a tax lien foreclose. About 20 days later the owner sold to an LLC at a much lower price and paid off the tax liens which is in the owners right. However since the owner would have received the net proceeds from my bid which would result in a much higher payout I am trying to understand the logic. Did this LLC solicit to her post sale telling her to sell the house and pay of the taxes and net some money and she did not know my bid would actually net her $30k more? Trying to understand what likely happened? Thanks!