Short answer. No. Rule 68 expressly states that a judicial foreclosure sale shall not affect the rights of persons holding prior encumbrances on the property. Once confirmed, the sale transfers the rights of the parties to the action to the purchaser, but an earlier lien with priority survives the sale rather than being wiped out.
What the law says
Such sale shall not affect the rights of persons holding prior encumbrances upon the property or a part thereof
Rule 68, Section 3 — Sale of mortgaged property; effect. Read the full provision →
How the sale itself is ordered
Rule 68, Section 3 comes into play once a defendant fails to pay a foreclosure judgment on time. On motion, the court... shall order the property to be sold in the manner and under the provisions of Rule 39 and other regulations governing sales of real estate under execution. That sale follows the same execution-sale rules used elsewhere, and it is at this sale stage that the protection for prior encumbrances applies.
Prior encumbrances survive the sale
Section 3 states the protection you are asking about without qualification: such sale shall not affect the rights of persons holding prior encumbrances upon the property or a part thereof. A mortgage or lien that had priority before the foreclosure sale keeps that priority afterward — the sale does not erase it, and the property that changes hands remains subject to it.
What confirmation of the sale does transfer
The rule separately describes what confirmation of the sale accomplishes: when confirmed by an order of the court, also upon motion, it shall operate to divest the rights in the property of all the parties to the action and to vest their rights in the purchaser, subject to such rights of redemption as may be allowed by law. What passes to the purchaser is the rights of the parties who were actually involved in the foreclosure action — not a clean slate wiped free of every other prior claim.
Possession follows confirmation or the redemption period
Once the confirmation order becomes final, or once any allowed redemption period expires, the rule gives the purchaser or the last redemptioner the right to possession, unless a third party is actually holding the property adversely to the original judgment obligor. That purchaser may then secure a writ of possession, on motion, from the same court that ordered the foreclosure.
Why a buyer at the sale still has to check for prior liens
Because the sale does not extinguish an earlier, higher-priority encumbrance, a purchaser at the foreclosure sale takes the property subject to it — the purchaser does not automatically end up with property free of every claim simply by buying it through the court process. This is also why a lienholder with priority generally does not need to intervene in the foreclosure case just to keep that priority intact; the rule preserves it without requiring active participation in the proceeding.