Newbie needs advice, I saw something I dont understand

[Marty Davis]

I was at a sherrifs sale in november and saw a property with a sale price of 360k in 2005 (8 plex) which the bank was forclosing on. The upset price was 166k and no one bid. The bank got it for a dollar. This past Monday I was at a tax lien sale at the same court house and the same property has a lien totaling 64k. No one bid. If I had bought the tax lien would I have gotten the property free of the bank lien?  

[Steve Babiak]

So, you said you were at a "tax lien" sale at a courthouse in PA.  Well, PA does not have "tax lien" sales, they are tax deed sales. 

Then there are two methods by which municipalities collect on delinquent taxes: the sale can be conducted by the county Tax Claim Bureau (TCB), or the sale can be conducted by the county Sheriff. Different rules apply to those two sale types. 

Now, assuming it was a tax deed Upset Sale conducted by the TCB, that particular sale takes place with all liens of record remaining in place. And, the mortgage foreclosure sheriff sale divests the mortgage lien. But then the tax deed sale is going to be flawed and challenged due to the very likely possibility that the new owner did not receive proper notice of the impending tax deed sale. And when the bank does get served notice, they will get taxes paid up to remove the property from tax sale if the property has market value to justify.

Another reason nobody bid is that there maybe was more than one mortgage. Or property condition did not check out. Or maybe everybody missed this one.

Let's get the opinion of @David Krulac too ...