New laws allow the deficiency of the borrowers to be limited to the difference between the amount of the sale and fair market value, not the amount of the loan. How do I recover the excess funds? Tax delinquent properties are sold in a Tax Foreclosure sale each month in … Save my name, email, and website in this browser for the next time I comment. A little-known law entitles you to the foreclosure surplus funds that the county generated after the sale of your home. You certainly can tell you enjoy your profession and you definitely have been of great service to me. SURPLUS OR EXCESS FUNDS AFTER FORECLOSURE. Per O.C.G.A. Foreclosure sales in Texas are held between 10 a.m. and 4 p.m. on the first Tuesday of every month. This process typically takes some months to work through the banking and trustee/attorney web of intrigue and indifference. The petition is not required to be filed as an original suit separate from the underlying suit for seizure of the property … If you are sure there are excess proceeds from the foreclosure, you need to contact the folks that did the foreclosure and demand the excess proceeds from the sale; depending on the type of foreclosure (tax vs mortgage) you may be able to redeem (buy back) the property. We would be more than happy to investigate your case and help you claim your excess proceeds. Why You Should Get a Lottery Lawyer if You Hit the Lotto. Manfred Sternberg is board-certified by the Texas Board of Legal Specialization in consumer and commercial law. How do I recover excess funds from foreclosure in Texas? The seal and signature of the notary public will also have to be included with the rest of the documents. We serve businesses, corporate and partnership clients in Greater Houston and throughout Texas, including such communities as Bellaire, River Oaks, Galleria, Clear Lake, Galveston, Pearland, Katy, Sugar Land, Spring, Tomball, The Woodlands, Montgomery, Alvin, Conroe, Kingwood, Humble, Harris County, Fort Bend County, Montgomery County, Brazoria County and Galveston County. You have both been tremendously helpful with [advising on our new startup including drafting the necessary contracts.] CLAIMS FOR EXCESS PROCEEDS (a) A person, including a taxing unit, may file a petition in the court that ordered the seizure or sale setting forth a claim to the excess proceeds. Once you complete the form, you will need to use a notary public to sign it. Often, this letter is sent to the foreclosed home address and the rightful owner never receives it. Demands and communications with the trustee should be made early and frequently, with all demands sent certified mail and calls well documented, in order to prod them to conclude the process of returning the funds. Recovering excess proceeds following the assignment or transfer of the former owners claim to the excess proceed requires strict adherence to the requirements set forth by the Texas Legislature. Once you have your documents gathered, you can fill out the claim form. Does Everyone Really Need to Know You Won the Lottery? The petition must be filed before the second anniversary of the date of the sale of the property. Often, a home will sell for more than the amount needed to cover the unpaid taxes. Losing your home is a devastating event, but remember that you haven’t lost everything. The first bill, sponsored by Sen. Peter J. Lucido, R-Shelby Twp, seeks to allow people to request the remaining proceeds from the sale of tax-foreclosed property through the judge who ordered the foreclosure. 1 … Required fields are marked *. So, the sale resulted in excess proceeds of $25,000. Prior owners are entitled to receive any equity that remains after a foreclosure sale. If you’re one of the thousands of Texas residents struggling after a tax-related foreclosure, there may be some good news for you. I can not begin to tell you how much I appreciate the time and effort you took yesterday to advise and assist me in this real estate fiasco I am experiencing. As alluded to above, the Texas Tax Code allows for a former owner to assign or transfer his/her rights to claim any excess proceeds following a tax lien foreclosure to a third party. Excess Funds Online is a nationwide company helping individuals and businesses recover surplus funds. Although there are a few steps to getting your money, you could get thousands of dollars or more, so it’s certainly worth the effort. 301 Jackson St Richmond, TX 77469 View on Google Maps. State statutes specify when and where such sales may be held, but the location is often the courthouse. The law in this area is relatively well settled, and only in rare cases will a dispute result in a prolonged court battle. Foreclosure is never a good thing, but as the housing market improves, many people are surprised to find out that they have the right to receive excess funds after foreclosure. The typical foreclosure will not result in an amount above and beyond that which is owed to the lender, and the defaulted borrower may be on the hook for the deficiency. A little-known law entitles you to the foreclosure surplus funds that the county generated after the sale of your home. Their ability to professionally handle general business law, complex commercial transactions and litigation has been critical to our success. If a conflict exists between junior lenders regarding priority, the trustee will likely interplead the funds into the registry of a court, and allow a judge to decide to whom the money belongs, and in what order. (i) A fee charged by an attorney to obtain excess proceeds for an owner may not be greater than 25 percent of the amount obtained or $1,000, whichever is less. Helpful Links. Welcome to our channel!Today's video covers How to Collect Excess Funds from a Foreclosure Sale. Foreclosure. The primary document which by Texas law governs foreclosures and the distribution of funds by a trustee or substitute trustee is the deed of trust. CONTACT I PRIVACY POLICY I DISCLAIMER I © BELENKY LAW FIRM PLLC document.write(new Date().getFullYear()); ALL RIGHTS RESERVED I SITEMAP, 832.838.4828 I [email protected] I 10685-B HAZELHURST DR. #20050 HOUSTON, TX 77043. Learn how your comment data is processed. Browse related questions. What Happens to Excess Funds After a Tax Foreclosure Sale? § 34.04. When a property is sold at a tax foreclosure sale for more than the total delinquent tax amount, any excess funds over that amount are placed into … At the foreclosure sale, their home sells for $350,000. A person conducting a sale for the foreclosure of a tax lien under Rule 736 of the Texas Rules of Civil Procedure shall, within 10 days of the sale, pay any excess proceeds after payment of all amounts due all participants in the sale to the clerk of the court that issued the order authorizing the sale. My house was sold in foreclosure and the highest bidder paid more than the mortgage company asked for. Mailing Address. Watch the video for details. There are no supreme court cases or laws regulating the reasonableness of trustee fees, however, one case has rejected a 10% fee because the trustee failed to properly account for the work performed. However, if you don’t act fairly quickly, you could end up missing out on tens of thousands of dollars that are rightfully yours. 34.04 of the Texas Tax Code provides in part as follows: (a) A person, including a taxing unit, may file a petition in the court that ordered the seizure or sale setting forth a claim to the excess proceeds. Property owners are entitled to the excess funds of auction sales, and with the help of a real estate attorney they can gain access to these funds quickly and efficiently. Current tax law requires excess funds from property sales to be deposited with the county treasurer. The excess proceeds will be placed into the court's registry. Jarvis, Steinmetz, and Everyone Wins each submitted a claim for the funds. Next the deed of trust should require the repayment of the foreclosed loan. This site uses Akismet to reduce spam. If you’re one of the thousands of Texas residents struggling after a tax-related foreclosure, there may be some good news for you. You might have a mortgage foreclosure surplus funds claim when you sell your house through a foreclosure sale. After it obtains a judgment, the taxing entity will post the property for foreclosure. Since the county is only legally obligated to send out one notification of the availability of these funds, many of them go unclaimed. A person who is not an attorney may not charge a fee to obtain excess proceeds for an owner. However, in some situations, such as a long term loan which is mostly paid off or a foreclosing junior lien, there may be funds left over from the sale, which under the typical deed of trust must be returned to the defaulted borrower. They are a rare breed in today’s legal community. So thank you both, very much. 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