Tax Foreclosure in Pennsylvania: What Homeowners Need to Know
A guide from AuctionBlock.org
Pennsylvania has a distinctive tax sale system that differs significantly from most other states. If you are a Pennsylvania homeowner who has fallen behind on property taxes, understanding the process is critical — because Pennsylvania uses a two-stage sale system, and the protections available to you change dramatically depending on which stage your property has reached.
This guide explains how tax foreclosure works in Pennsylvania, including the unique procedures in Philadelphia, what state programs exist to help you, and what steps you can take right now.
How Property Tax Collection Works in Pennsylvania
In Pennsylvania, property taxes are collected at the county, municipality, and school district levels. You may receive multiple tax bills from different taxing authorities for the same property. If you fail to pay any of these, the delinquent taxes can lead to a tax sale.
The primary law governing tax sales in Pennsylvania is the Real Estate Tax Sale Law (RETSL), Act 542 of 1947 (72 P.S. § 5860.101 et seq.). Philadelphia operates under a separate statute — the Municipal Claims and Tax Liens Act (53 P.S. § 7101 et seq.).
The Two-Stage Tax Sale System
Pennsylvania uses a two-stage process for selling properties with delinquent taxes:
Stage 1: The Upset Sale
The upset sale is the first attempt to sell a tax-delinquent property. It typically occurs once a year, administered by the county tax claim bureau.
Key features of the upset sale:
- The minimum bid is the total amount of delinquent taxes, penalties, interest, and costs owed on the property
- The sale transfers the property subject to all existing liens and mortgages — the buyer takes the property with those encumbrances still attached
- Because the buyer takes the property subject to liens, upset sales often attract few bidders, especially if the liens exceed the property's value
- The property owner must receive notice before the sale, including notice by certified mail and publication in a local newspaper (72 P.S. § 5860.601-602)
Your right to stop the upset sale: You can prevent the sale by paying the full amount of delinquent taxes, penalties, interest, and costs before the sale date. Some county tax claim bureaus also offer installment agreements — contact your county tax claim bureau to ask.
Stage 2: The Judicial (Free and Clear) Sale
If a property does not sell at the upset sale, or if the county petitions the court, the property may be sold at a judicial sale (also called a "free and clear" sale).
Key features of the judicial sale:
- The sale is ordered by the court of common pleas
- The sale extinguishes all liens, mortgages, and encumbrances — the buyer receives clear title
- Because the property is sold free and clear, judicial sales typically attract more bidders and higher prices
- The property owner has additional due process rights before a judicial sale, including the right to a court hearing
- The court must find that the owner received proper notice and that the sale is justified
Your right to stop the judicial sale: You can petition the court to set aside the sale or pay the delinquent amount before the court confirms the sale. Consult with a legal aid attorney immediately if your property is scheduled for judicial sale.
Philadelphia: Sheriff's Sale
Philadelphia operates under different rules than the rest of Pennsylvania. The City of Philadelphia uses the sheriff's sale process for tax-delinquent properties:
- Delinquent property taxes in Philadelphia are collected by the Philadelphia Department of Revenue
- If you do not pay, the city files a tax lien against your property
- The city can then petition the Court of Common Pleas to sell the property at a sheriff's sale
- Philadelphia has a court-administered diversion program that may allow mediation before a sheriff's sale — contact Philadelphia Legal Assistance for guidance on current procedures
Before a sheriff's sale in Philadelphia:
- You must receive notice by personal service or certified mail
- The property is listed in the Philadelphia Legal Intelligencer and on the city's sheriff's sale website
- You have the right to petition the court to postpone or stop the sale
Philadelphia Department of Revenue: (215) 686-6442 or phila.gov/revenue
The Homestead Exclusion
Pennsylvania's homestead exclusion (sometimes called the homestead exemption) allows eligible homeowners to reduce the assessed value of their primary residence, which lowers their property tax bill. However, this exclusion is not available statewide — it must be enacted by the local taxing authority (county, municipality, or school district).
Eligibility: You must own and occupy the property as your primary residence. The amount of the exclusion varies by jurisdiction.
How to apply: Contact your county assessment office to find out whether the homestead exclusion is available in your area and how to apply.
HEMAP: The Homeowners' Emergency Mortgage Assistance Program
Pennsylvania has a program called the Homeowners' Emergency Mortgage Assistance Program (HEMAP), established by Act 91 of 1983 (35 P.S. § 1680.401c et seq.). HEMAP provides loans to homeowners who are at risk of losing their homes due to circumstances beyond their control.
Key features of HEMAP:
- HEMAP provides a loan (not a grant) to help you catch up on delinquent mortgage payments or, in some cases, other housing costs
- The loan is interest-free for the initial period, then accrues interest at a rate set by the program
- Repayment begins when you are financially stable
- The loan is secured by a lien on your property
Eligibility requirements:
- You must be a Pennsylvania homeowner living in the property as your primary residence
- You must have experienced a financial hardship due to circumstances beyond your control (such as job loss, illness, or death of a spouse)
- You must demonstrate a reasonable prospect of being able to resume mortgage payments
- You must be delinquent on your mortgage
- The property must be your primary residence
How to apply: HEMAP applications are processed through HUD-approved housing counseling agencies in Pennsylvania. You cannot apply directly — you must work with an approved counselor. Find a counseling agency at hud.gov/findacounselor or contact PHFA (below).
Important note: HEMAP funding has varied over the years depending on state budget allocations. Contact PHFA to confirm whether the program is currently accepting applications and whether funds are available.
Pennsylvania Housing Finance Agency (PHFA)
PHFA administers several programs relevant to homeowners facing tax delinquency:
Pennsylvania Homeowner Assistance Fund (PAHAF)
Pennsylvania received federal HAF allocations under the American Rescue Plan Act. The program has provided assistance for delinquent property taxes, mortgage payments, and other housing costs for homeowners who experienced financial hardship. Check current availability at phfa.org or call (855) 827-3466.
PHFA Mortgage Programs
PHFA offers below-market-rate mortgage products and refinancing options for qualifying Pennsylvania homeowners. Visit phfa.org for current program details.
Property Tax/Rent Rebate Program
Pennsylvania's Property Tax/Rent Rebate Program provides rebates of property taxes paid by qualifying homeowners. This is a rebate program — you pay your taxes first, then receive a rebate from the state.
Eligibility:
- You must be 65 years of age or older, OR a widow or widower age 50 or older, OR permanently disabled age 18 or older
- Your annual household income must be below the program limit (verify the current limit at revenue.pa.gov as it is periodically adjusted by the legislature)
- The property must be your primary residence
How to apply: File Form PA-1000 with the Pennsylvania Department of Revenue. Visit revenue.pa.gov or call (888) 222-9190 for current deadlines and income limits.
Legal Aid Resources in Pennsylvania
If you are facing a tax sale in Pennsylvania, these organizations provide free or low-cost legal assistance:
- Philadelphia Legal Assistance (PLA): Serves Philadelphia residents. (215) 981-3800 or philalegal.org
- Community Legal Services of Philadelphia: Serves low-income Philadelphia residents. (215) 981-3700 or clsphila.org
- Legal Aid of Southeastern Pennsylvania: Serves Bucks, Chester, Delaware, and Montgomery counties. (610) 954-3117 or lasp.org
- MidPenn Legal Services: Serves central Pennsylvania. (800) 326-9177 or midpenn.org
- Southwestern Pennsylvania Legal Aid: Serves southwestern PA counties. (724) 225-6170 or splas.org
- Legal Aid of Northwestern Pennsylvania: Serves Erie and surrounding counties. (800) 665-6957
- Neighborhood Legal Services (Pittsburgh): Serves Allegheny and surrounding counties. (412) 255-6700 or nlsa.us
- Pennsylvania Legal Aid Network: Statewide referral. palegalaid.net
Emergency Steps If You Are Facing a Tax Sale
If you have received a tax sale notice or your property is scheduled for sale:
- Do not ignore the notice. Tax sales in Pennsylvania proceed on a schedule, and missing deadlines eliminates your options.
- Contact your county tax claim bureau immediately to find out exactly how much you owe and whether installment agreements are available.
- Call a legal aid organization listed above. If your property is approaching a judicial (free and clear) sale, you need legal representation.
- Ask about HEMAP — contact a HUD-approved housing counseling agency to begin the application process.
- Check whether the Pennsylvania Homeowner Assistance Fund has available funds at phfa.org or call (855) 827-3466.
- Apply for the Property Tax/Rent Rebate if you are 65 or older, disabled, or a qualifying widow/widower — and have not already applied.
- Check whether your jurisdiction offers a homestead exclusion by contacting your county assessment office.
- Contact a HUD-approved housing counseling agency: Find one at hud.gov/findacounselor or call (800) 569-4287.
- Document everything — keep copies of all tax bills, payment receipts, notices, and court documents.
Need Help?
If you are a Pennsylvania homeowner facing property tax difficulties and you are not sure where to start, we can help you understand your options and connect you with resources in your area.
Visit auctionblock.org/get-help to connect with us.
You are not alone. There are programs designed to help you keep your home — but you have to take the first step.
Important Disclaimer
This guide is educational information only. It is not legal advice, tax advice, or financial advice. Laws and program rules change. Always verify current program requirements, deadlines, and eligibility thresholds directly with the relevant government agency before making any decisions. AuctionBlock.org is a mission-driven company providing educational resources about foreclosure prevention. We are not a law firm, not a tax preparation service, and not a government agency. Consult with a qualified attorney or HUD-approved housing counseling agency for advice about your specific situation.
Published by AuctionBlock.org, a mission-driven company dedicated to foreclosure prevention for vulnerable families.
Last updated: March 21, 2026