Pennsylvania Tax Sales
Hello, I am from Pennsylvania and trying to understand tax sales better. If it makes a difference, I am just looking for vacant land for my own personal use but would be interested in exploring this as a possible future investment strategy. I understand every county can and will be different but just tell me if I'm wrong/misunderstanding anything please.
From what I understand, PA is a Tax Deed State, not a Tax Lien State. Meaning, if you purchase a property at a tax sale in PA, you own that property. Depending on the sale, there may or may not be other liens that come with your purchase of that property.
First is the Upset Sale. This is when someone doesn't pay their property taxes for at least 2 years and the property goes to auction at the Upset Sale. If you purchase a property at this sale, any and all other liens will come with the property. If there is a mortgage lien, you the purchaser are responsible for paying this lien but the mortgage itself, stays with the original mortgagee. This sale happens only one time a year, around September.
If a property does not sell at the Upset Sale, it will go to the Judicial Sale which also happens one time a year, in the spring. If you purchase a property at this sale, you own this property free and clear from any and all other liens that may have been on the property.
There is also the private sale, which I really don't understand but sounds like it is basically anytime between the Upset and Judicial sale, you can go to the courthouse and put a bid in for a property. Just like the Upset Sale, all liens come with the purchase.
Please let me know if this understanding is vastly misunderstood and/or if I'm missing any major concepts.