If a Pennsylvania home sells at a tax sale or sheriff sale for more than is owed, the leftover money goes to the former owner after the taxes, costs, mortgages and other liens are paid. For county tax claim bureau sales, the owner has three years from the date of the sale to claim it before it goes to the local taxing districts (72 P.S. 5860.205(f)).
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Losing a house at a sale is hard enough without wondering whether money was left behind. Sometimes it was. Checking is free, and you can usually do it yourself.
Pennsylvania has two common forced sales of homes, and the surplus is handled differently in each.
The Real Estate Tax Sale Law sets the order. The bureau first repays costs that taxing districts advanced and keeps a commission of 5% of the money collected to cover its costs. Then section 205 says the rest goes, in this order:
1. The Commonwealth, for state tax liens, in the cases the law describes.
2. The local taxing districts, for the taxes owed.
3. Taxing districts or municipal authorities, for municipal claims such as water or sewer.
4. Mortgage holders and other lien holders, in order of priority.
5. The owner of the property.
Before paying anyone, the bureau asks the court of common pleas to confirm its proposed schedule of distribution. Each person on the schedule is sent a copy by first class mail and can object before the court confirms it.
The deadline. If no claim for the owner's share is made within three years of the date of the sale, the law sends that money to the taxing districts instead. Do not wait.
At a sheriff sale, the sheriff prepares a schedule of proposed distribution no later than thirty days after the sale and files it with the prothonotary, the court's records office (Rule 3136). The handbill posted before the sale tells you the date the schedule will be filed.
The sheriff then pays out the money according to that schedule unless someone files written exceptions with the sheriff not later than ten days after the schedule is filed. If you think the schedule is wrong, for example it pays a lien that was already paid off or leaves you out, filing exceptions in that window is how you raise it. The court then decides. If the home was sold to the lender for costs only, there is usually no surplus, and the rule says no schedule needs to be filed.
In Tyler v. Hennepin County, decided May 25, 2023, the U.S. Supreme Court ruled unanimously that a county could not keep the money from a tax sale beyond the tax debt. Minnesota had sold a woman's condo for unpaid taxes and kept the extra money. The Court said that violated the Takings Clause, because the government may not take more from a taxpayer than she owes. Pennsylvania's tax sale law already sends what is left after taxes, costs and liens to the owner. The Court also said a state may set a process for owners to claim surplus money, which is why Pennsylvania's three-year claim deadline still matters. The lesson for Pennsylvania homeowners: any money left for the owner is yours, but you have to ask for it.
You can usually claim surplus money yourself, without paying anyone a percentage.
After a sale, some people get letters from companies offering to recover the money for a share of it. Some are legitimate, and some people choose to use them, especially when the paperwork is complicated or there are several heirs. Before you sign:
If you are reading this before a sale, the options are often better: catching up, a payment plan, or selling the house yourself can leave you with more of your equity. See can you stop a sheriff sale in Pennsylvania and behind on property taxes in Pennsylvania.
Usually yes, if the sale brought in more than the taxes, costs and liens. The owner comes fifth in line after state tax liens, local taxes, municipal claims, and mortgages and other liens (72 P.S. 5860.205(d)).
For a county Tax Claim Bureau sale, a claim has to be made within three years of the date of the sale, or the money goes to the taxing districts (72 P.S. 5860.205(f)).
File written exceptions with the sheriff not later than ten days after the schedule is filed (Rule 3136). The court then decides.
No. You can usually claim it yourself by contacting the Tax Claim Bureau or sheriff. Some people choose paid help; if you do, understand the fee before you sign.
On May 25, 2023, the U.S. Supreme Court ruled that a county keeping the money from a tax sale beyond the tax debt violated the Takings Clause.
No. Orrindale is free to homeowners and we are not a buyer. If we have local buyers working in your county we will introduce you, you choose who to talk to, and you are never under any obligation. If we do not, we will still point you to free help.
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This page is general information, not legal or tax advice. For your specific situation, consult a licensed attorney in your state or the relevant agency. Orrindale is a matching service, not a law firm, lender, or government program.