Tax Deed Investing: What is an “Upset” Sale?
Author: Joanne Musa
In Pennsylvania, some counties have two different tax sales; the “upset” sale, and the “judicial” sale. If tax sale properties are not sold at either of these two sales, the property then goes on the “repository” list and can be sold by private bid. The upset sale is held every year in the fall. It’s called an “upset” sale because the minimum bid for the properties in this sale is known as the “upset” price; which includes any unpaid taxes from the county as well as any municipal liens.
If a property is not sold in this sale, it is sold in the “judicial” tax sale in the spring. Not all Pennsylvania counties have judicial sales but they all have an upset sale.
What you may not know about the upset sale is that all properties are sold subject to any liens or judgments. That means that if you purchase a tax deed at this sale, you are responsible for any other unpaid liens or judgments,
Finance