After the sheriff sale I'm assuming no one bought the home? If that's the case the bank takes back the property. They keep it in their inventory until they decide to sell it. Once they do, they will use a real estate broker to list the home for what they consider market value. At that point it would hit the open market free and clear of any leans or judgements and be available for sale. This process doesn't always occur immediately. I've seen houses sit for years before the bank decides to list them.
There are plenty of great buys out there. Also, the interest rates are unbelievably low, if you wait too long you could lose out on that end. Long term (low interest rates) is much more valuable than saving a few dollars (if even so) on the purchase.