What to Do When a Lienholder Tries to Take the Excess Proceeds of a Foreclosure Sale

If you’ve faced the loss of your home or other property through foreclosure, it can be a stressful process. But you may be counting on anything that’s left over, also called the excess proceeds, from the sale of a foreclosed property. So, what happens if a lienholder tries to take that money? The good news is that you have rights, and lawyers experienced in recovering Texas excess foreclosure sale proceeds, like Manfred Law, can help.

Recovering Excess Proceeds in Texas

If you owe money on your property, the lien holder can force the property into foreclosure because of an unpaid mortgage, an unpaid mechanic’s lien from a contractor, a tax lien, or other lien that you can’t pay. An administrator will then sell your house to the highest bidder. However, if the sale of your property generates more than $25 in excess funds, you are entitled to the excess money once all the liens on your property are satisfied. You’ll have two years to claim the excess funds.

Eligibility for Excess Funds

You will need to petition the court to receive your excess funds. If all the liens on the home are satisfied by the sale, you’re only entitled to the excess proceeds if:

• You’re the owner of the property, or
• You are assigned the proceeds by the owner at least 36 days after the excess proceeds are deposited with the court.

If there’s more than one property owner, the court will assign the excess proceeds to each owner “as their interests appear.” If the amount you owe the lien holders is satisfied by the sale, they are not entitled to the excess proceeds. However, the process can be challenging to navigate on your own.

What Can a Surplus Funds Recovery Lawyer Do for Me?

If you’re facing the foreclosure of your home or property, you need help. To ensure you get the excess proceeds you’re entitled to, you need an experienced lawyer. A skilled surplus funds recovery lawyer can help you through this process as quickly and efficiently as possible. The team at Manfred Law can help. Call them at (713) 547-5460 or contact them online to schedule your consultation.