To claim foreclosure surplus funds in Texas,
you must file a petition in the county district court within two years, providing proof of ownership (deeds, ID), lien information, and paying fees, as the process involves court filings, potentially a hearing, and competing claims from junior lienholders, making legal help highly recommended.
The specific steps vary slightly between mortgage and tax foreclosures, with mortgage cases going through the trustee first, while tax sales require petitioning the county directly.
General Steps to Claim Surplus Funds
- Identify the Foreclosure Type: Determine if it was a mortgage (deed of trust) or property tax foreclosure, as procedures differ slightly.
- Contact the Trustee/County: For mortgage foreclosures, contact the trustee who handled the sale; for tax foreclosures, contact the county where the property was sold to ask about surplus funds and claim forms.
- Gather Documentation:
- Collect your ID, the deed when you owned the home, the current deed, any lien documents, marital records, and proof of heirship if applicable.
- File a Petition:
- File a formal claim (Petition for Excess Proceeds) with the district court in the county where the property sold, explaining why you’re entitled to the money.
- Submit Documents: Attach all your supporting documents to the petition.
- Pay Fees & Attend Hearing:
- Pay court fees and be prepared to attend a hearing to prove your claim, as other creditors may also be after the funds.