In Texas, What Happens If You Miss the Two-Year Deadline to Claim Excess Proceeds from a Foreclosure Sale?

When property sells at a foreclosure sale in Texas, it may sometimes net more money than what’s needed to satisfy the owner’s debts. If that excess amount is more than $25, the former property owner can claim that amount. They have two years to claim the excess proceeds. 

Many property owners are, however, unaware that they have a right to these excess proceeds. They may miss the two-year deadline to claim those proceeds. The question then becomes what, if anything, a former property owner can do to claim the excess proceeds.

You Missed the Filing Deadline. Now What?

Texas does not provide for any exceptions to the two-year window to file a claim for excess funds. At the end of the two years, the excess proceeds are distributed between all of the taxing entities that were involved in the sale. 

That Texas doesn’t provide for exceptions doesn’t mean you have no options. Attempting to claim the funds after the two-year period ends will be difficult, but you may have some limited options. 

Texas requires that a county clerk send the following to the former owner of a sold property:

• A written notice sent by certified mail with a return receipt requested
• The amount of excess proceeds
• Information about the owner’s right to claim the excess proceeds
• A copy of the relevant sections of the Texas Code 

This notice must be sent to either the former owner’s last known address, based on the court’s records or other sources reasonably available to the court. 

You may be able to prove that the county didn’t inform you. You may be able to show that you had no reasonable way to know you were entitled to the excess funds or were aware that they existed. 

If you missed the two-year deadline, a lawyer can help you determine if you still have any ways to claim the funds. 

Hire a Skilled Property Lawyer Who Knows Texas

If your property has been auctioned and you think you have a right to the excess process, a skilled Texas property law attorney can help. The attorneys at Manfred Law help Texas property owners claim what’s theirs. Call us at 713-547-5460 or contact us online to schedule your consultation.