Do You Need a Lawyer to Obtain Excess Proceeds from a Foreclosure Sale?

When you’re going through a foreclosure sale, the process is stressful. It's challenging enough to uproot your life without having to figure out what’s happening and what you can do to protect your limited legal rights. A property sale can happen for several reasons, including unpaid taxes, a lien on your home, a mechanic’s lien, or an unpaid mortgage. But if your property is sold in foreclosure, you want to ensure that you collect any funds remaining from the sale over the amount you owe. You don’t have to figure this process out on your own. An experienced attorneys like the attorneys at Manfred Sternberg & Associates can help.

What Happens to the Excess Proceeds from a Foreclosure Sale?  

In some cases, your property may sell for a higher price than the total liens on the property. The lien holder, whether a state or federal agency, a private company, or an individual, can only recover the amount of the lien plus the costs of foreclosing on and selling your property. Anything left over may pay any additional junior liens on the property. You can recover the excess proceeds if there are no additional liens.

For example, suppose you own a home with a $50,000 mortgage that the bank forecloses on and sells for $150,000. In that case, you may be entitled to recover the additional $100,000 minus the costs of the foreclosure and sale or any additional liens. However, you have a limited amount of time to recover these funds.  

Recovering Excess Funds in Texas  

To  recover excess funds  from a tax foreclosure sale, you must petition the court that ordered the sale or the foreclosure trustee. You must do this within two years of the property sale date. You may be eligible to recover excess funds if:

• You owned the property sold in whole or in part
• The property sells for more than all the combined liens plus the costs of the foreclosure and sale of the property
• You file your petition for the excess funds within two years of the sale.  

If you own the property with more than one person, the court or trustee will generally assign properly claimed excess proceeds as indicated on the title or otherwise. 

Hire an Experienced Surplus Funds Recovery Attorney   

Unfortunately, recovering excess proceeds from a foreclosure sale can be a complex process and time-consuming process.Typically, there is very little time to get everything in order—and the process is often slow. But you don’t have to navigate the process on your own. An experienced attorney can help.

Manfred Sternberg & Associates has helped hundreds of clients withstand and overcome the tedious process of protecting your rights in the recovery of surplus funds in the state of Texas. Find out how we can help you as well. Call Manfred Law at (713) 547-5460 or contact us online today through our online submission form.