Excess Proceeds from a Foreclosure Sale: Terms and Deadlines You Need to Know

If you’re going through or recently went through a foreclosure sale, it’s important to understand what happens next and the terms and deadlines you’ll face before and after the process. Foreclosure sales and excess fund recovery can be a complex process. That’s why you must hire an experienced lawyer like the attorneys at Manfred Law to help.

Foreclosure Sale: If your property has unpaid liens, the lien holder may, in some cases, force the sale of the property to satisfy the liens by petitioning the court or a trustee. This is a foreclosure sale. Foreclosure sales are public, open to all bidders, and often happen on a specific day at the county courthouse each month.

Foreclosure Trustee: In Texas, lienholders may use a judicial or non-judicial process to foreclose on a property. With the non-judicial process, the foreclosure trustee may be connected to or appointed by a mortgage lender. Banks, individuals, and title companies can serve as foreclosure trustees. Your mortgage agreement may contain the right for a mortgage holder to use a non-judicial foreclosure process.

Excess Funds: After the sale of your property, the lienholder may only recover the amount of the lien on your property and the costs of the foreclosure and sale. Any funds over that amount are excess funds. You can recover these funds, but you must petition the court or trustee. 

Costs of Foreclosure: The foreclosure costs can include the auctioneer’s fee, advertising costs, legal fees, and other direct costs to foreclose on your property and sell it. You may recover the excess proceeds from the sale over the total amounts of the liens, including interest and penalties, and the costs to foreclose and sell the property.

Recovery Deadline: In Texas, you have only two years from the date of the sale of your property to request the excess funds. Because the process isn’t simple, you should act quickly to hire an experienced attorney to help you.

You Need an Experienced Surplus Funds Recovery Attorney

If you’re facing a foreclosure sale, it’s important to understand your rights during and after the sale. An experienced attorney like the lawyers at Manfred Law can ensure you recover the excess funds from a property sale in a timely manner. They’ve been helping people in Houston for years and can help you too. Call Manfred Law at (713) 547-5460 or contact them online to schedule your consultation.