Not really, it's not like you are loosing that money.  

If I purchase a property in PA at upset tax sale and there is an existing mortgage does it get paid off from the excess proceeds?

If aloss covered by this policy is also covered byother insurance, a service agreement, aprotection plan or guarantee, the coverageprovided under this policy will be excess over anyamounts payable under such other insurance,service agreement, protection plan or guarantee.A service agreement means a service plan,property restoration plan, home warranty or othersimilar service warranty agreement, even if it ischaracterized as insurance.A protection plan or guarantee means a productprovided by an online-enabled application, website, or digital network platform which providesproperty damage protection for “home-sharinghost activities”, even if it is characterized asinsurance.Correct me if I'm wrong here, but I take this to mean that... tenant destroys your prop.

This is from a site called Investopedia.From any math site, the formula for profit is:  Profit = Selling price - Cost price...and finally, from the merriam-webster dictionary, their definition of profit is: the excess of returns over expenditure in a transaction or series of transactions especially : the excess of the selling price of goods over their cost

We also don't want to loose a portion of a paid deposit which is almost always completely used up with the repairs due to move out condition.

We are in shortage, where does the excess come from?

This incentizes the person to buy otherwise they loose their "option payment." 

What would happen if the tenant suddenly loose it or ex-husband shows up and messes up everything?

These loans cannot exceed a certain amount in cost and fees which was implemented in the Dodd Frank act of 2009 to prevent lenders from excessive fees.

I have a 5-day inspection contingency period and on the 5th day I messaged by broker saying I need 50k back towards the deal due to excessive repairs.