In Texas, if your property is sold at a tax foreclosure sale for more than the amount of taxes, penalties, interest, and costs owed,
you can recover these excess proceeds.
You must petition the district court in the county of the sale within two years to claim these funds,
or they may be lost.
Key Steps and Information for Recovery:
- Deadline:
- A petition must be filed within two years of the date the deed was filed for record, or the taxing entities may keep the funds.
- Where to File: Submit a claim to the district court in the county where the property was sold.
- Documentation Required:
- Proof of ownership (e.g., deed), evidence of lienholder status (if applicable), and documentation proving you are the rightful owner or heir.
- Process: After filing the petition, a hearing may be scheduled to determine the rightful recipient of the funds.
- Third-Party Help:
- Companies or attorneys specializing in surplus funds recovery can assist, often working on a contingency basis (no upfront costs).
Eligibility:
- You must have been the owner of the property at the time of the sale.
- The sale price must exceed the total amount of liens, interest, and costs of the sale.
If there are multiple claimants, the court will determine the priority of payments.