Call Us At: 713-547-5460
Going through a foreclosure on your property is never an easy matter. If you’re in default, a lien holder, like your mortgage company or a mechanic’s lien holder, can sometimes force the sale of your property to recover their money. But in Texas, we take for granted that the lien holder can only recover the amount of their lien plus the costs of foreclosure and the sale. Under Texas law, you can recover any excess funds by petitioning the court or the trustee. However, there are 12 states in the U.S. where this isn’t the case. A woman in Minnesota recently took the fight to keep the excess proceeds from her foreclosed property to the U.S. Supreme Court .
Grandmother Geraldine Tyler owned an apartment in Minneapolis, Minnesota, and dutifully paid her property taxes for years. But she fell behind on her bills when she moved to a senior center and a safer neighborhood across town. By 2015, Ms. Tyler owed $2,311 in unpaid property taxes. When the city added penalties, fees, and interest, she owed almost $13,000.
Hennepin County seized Ms. Tyler’s condo and sold it for $40,000. But rather than keep the $13,000 she owed plus $2,000 for costs and return the rest to Ms. Tyler, the county kept the entire $40,000. In Minnesota, the law allows a local government to take “absolute title” when they seize a property, meaning Ms. Tyler wasn’t entitled to recover any of the excess proceeds of the sale.
On April 26, 2023, the U.S. Supreme Court heard Ms. Tyler’s case. The Pacific Legal Foundation, the nonprofit representing Ms. Tyler, called Minnesota’s practice “an egregious violation of fundamental property rights.” But 11 other states also allow local governments to keep the entire amount gained from a foreclosure sale. For now, this remains a legal practice.
Fortunately, under Texas law, a lien holder who forces the sale of a property can only keep the value of the lien on the property plus any costs of foreclosing and selling the property. The former property owner is then entitled to petition the court or a trustee for the excess proceeds within two years of the foreclosure sale date.
If you’re facing a foreclosure, it’s important to understand your rights and how to recover any excess proceeds from the sale. But the system doesn’t make it easy to figure out what to do and when. An experienced attorney can help you recover the money quickly and efficiently. The skilled attorneys at Manfred Law can help. Call them at (713) 547-5460 or contact them online to schedule your consultation.
Mr. Sternberg’s track record and experience of working with clients from the earliest stages of their cases allows him to bring a uniquely broad-based perspective to the matters he handles.
By submitting this form, you agree to be contacted by our law firm, either by phone, text or by email.
Phone: 713-547-5460
1700 Post Oak Blvd
2 BLVD Place Suite 610
Houston, TX 77056
201 St. Charles Avenue
Suite 2500 PMB # 8873
New Orleans, LA 70170
Disclaimer: The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.
© Copyright 2023 | All Rights Reserved | Manfred Sternberg & Associates | Powered By Convert It Marketing | Privacy Policy