Foreclosure Overage Scenarios

A Comprehensive Lecture on Tax Foreclosure Surplus Proceeds Under Texas Law   Introduction: Framing the Legal Question Today, we are not merely asking, “How do I find excess funds?”  We are asking a more precise legal question: Under Texas law, how are excess proceeds created, held, noticed, claimed, adjudicated, and ultimately disbursed following a tax foreclosure sale in Dallas County? To answer that properly, we must analyze: The constitutional foundation of property taxat

A Comprehensive Homeowner Protection Guide When a property is sold at foreclosure for more than the total debt owed, the remaining funds are commonly called “excess proceeds”  or “surplus funds.”  These funds do not belong to the lender. They belong to the former property owner or lawful heirs. Unfortunately, the surplus recovery industry contains both ethical professionals and predatory actors. Contracts can range from reasonable contingency agreements to extreme assignments

The 2-Year Rule Most People Get Wrong If you’ve ever heard someone say “In Texas you have two years to get your property back”  or “You have two years to claim the money”  — they’re usually half right and half wrong . And that misunderstanding costs people real equity  every year. Let’s clarify exactly how Texas tax foreclosures  work, what the two-year timelines actually apply to , and why redemption rights and excess funds are not the same thing . This explanation is Texas-

In Texas, tax foreclosures don’t end when a property is sold. Often, they leave behind excess proceeds —real money that legally belongs to the former homeowner or their heirs. Yet time and again, those funds go unclaimed, not because they don’t exist, but because families are disconnected, uninformed, or distrustful of the process. A recent Dallas County case illustrates this reality clearly. A Deceased Homeowner and a Silent Family After the passing of a Dallas homeowner, hi

One of the most confusing aspects of Texas tax foreclosure cases is opening a court file and seeing dozens of names attached to a single property . Family members, unrelated individuals, government agencies, and even strangers may appear on the docket. For heirs and homeowners, this often raises a critical question: “If all these people were listed, who actually has the right to the money?” This scenario is far more common than most people realize, and misunderstanding it can

In Cook v. Harris County , decided on January 4, 2024, by the Texas Court of Appeals (14th District – Houston), the court addressed a critical issue involving excess proceeds  following a tax foreclosure sale . While not a direct challenge to homestead foreclosure, the case sheds light on how homestead protections  continue to influence property rights even after the sale has occurred. ⚖️ Excess Proceeds After Foreclosure In Texas, when a property is sold at a tax foreclosure

A real Dallas County excess proceeds lesson Recently, a Dallas County excess proceeds case involving a homeowner  was denied by the court. At first glance, the word denied  can feel final — like the door has been slammed shut. But here’s the part most people miss. The court denied the petition without prejudice , and the reason given was “failure to offer proof.” That language matters more than people realize. “Denied” does NOT always mean “Not Entitled” In excess proceeds ca

(And Why It Matters to Homeowners Like You) If you’ve ever received a Notice of Trustee Sale , your first reaction is usually fear, confusion, or disbelief. That’s normal. What most homeowners don’t  realize is that the trustee sale itself is not the end of the story . In fact, for many people, it’s the beginning of a separate process that determines what happens next — including whether money is left over in your name . Let’s walk through this in plain language. Step 1: What

Most people believe that when a home is foreclosed on, everything connected to it is gone forever. That belief costs Texas families millions of dollars every year . In reality, when a property in Texas  is sold at foreclosure or tax sale, the story doesn’t always end at the auction. In many cases, money is left over  — and that money legally belongs to the homeowner or their heirs. These funds are called excess proceeds  or surplus funds . This article explains how excess pro

Just imagine this for a moment… A parent passes away. The house is still in their name. Maybe there’s no will. Maybe multiple heirs are involved. And just as the family is trying to grieve and figure things out, a letter from the mortgage company shows up: “Payment past due.” “Foreclosure scheduled.” It hits fast. It hits hard. And most families have no idea what to do next. That’s where our work begins. Why This Happens So Often in Texas Have you ever noticed how nobody teac

Have you ever noticed how the word “mortgage”  feels heavy?Almost like it comes with its own storm cloud of paperwork and stress? Let’s clear that up — once and for all — in a way even a 7-year-old could understand. 🏠 A Mortgage Is Just a Promise With a Safety Guard Imagine someone wants to buy a house. They don’t have all the money upfront. So they make a deal: “I’ll borrow the money now, and I promise to pay it back little by little.” Simple, right? But here’s the importan

(Monday, Dec 1 — the day before Super Tuesday) Have you ever noticed how quiet a house gets the night before Super Tuesday?Almost like the walls know what’s coming. Just imagine this… I got a call last year from a man in Houston who said seven words I’ll never forget: “They’re selling my house tomorrow at 10.” No warning. No lead-up. Just a man who finally cracked under the pressure of pretending everything was fine. His voice was shaking — but not for the reason you’d expect

Have you ever noticed how stressful it feels when someone says, “Don’t worry, your money is safe”… but they can’t clearly explain how ? Most homeowners feel that way when dealing with foreclosure overages, probate funds, or court-released money. And that uncertainty is exactly why we take a different approach. Just imagine a process where: Your funds never touch a company’s personal account. Everything sits in a regulated legal trust account. Money only moves when the law say

When families face the loss of a loved one, the last thing they want is a long, expensive probate process just to transfer ownership of a home. Texas offers an alternative that can simplify everything: the Transfer on Death Deed , often called a TODD. This tool, governed by Texas Estates Code Chapter 114 , allows real property to pass directly to chosen beneficiaries— without probate —as long as the rules are followed. Below is a clear breakdown of how TODDs work, why they ma

In the world of Texas real estate, oil & gas, and pipeline ownership, disputes often blend contract obligations  with lien rights  and foreclosure actions . But what happens when one party uses foreclosure to force payment — while the other claims the real fight is really a breach of contract ? The Texas Supreme Court recently answered that question in Steelhead Midstream Partners, LLC v. CL III Funding Holding Company, LLC , and the ruling has major implications for joint ve

Have you ever wondered why foreclosing on a home equity loan isn’t exactly the same as a standard mortgage? Or why reverse mortgages follow their own set of rules? In Texas, the process is guided by Rules 735 and 736 of the Texas Rules of Civil Procedure , which were created specifically for these types of loans. Let’s break it down so it makes sense. Why Texas Needed Special Rules Foreclosures can be complex, but home equity loans and reverse mortgages have unique protection

“I’ve paid premiums for years… but why is my insurance dragging its feet?” To understand why delays happen — and how the law actually protects homeowners — you don’t need theory. You need a real case that exposed what happens behind the scenes. One of the most important cases in recent Texas history is Barbara Technologies Corp. v. State Farm Lloyds , decided by the Texas Supreme Court in 2019. This ruling changed the landscape for how insurers handle claims and how much powe

Imagine this: a homeowner in Houston or Dallas, with no recent claims, opens their renewal notice — and their premium jumped by 15% or more. They’re furious, but also bewildered. Why is this happening when nothing catastrophic hit their property? The real answer lies not just in weather or inflation, but in lobbyists , legislative influence , and a system built to favor the insurance industry. The Quiet Power Move: Lobbying Behind Closed Doors Insurance companies don’t just

Have you ever noticed how your home insurance bill keeps climbing… even if you’ve never filed a claim?Most homeowners think it’s just storms, inflation, or “the market.” But there’s a deeper layer to the story — one that rarely gets talked about. Behind the scenes, insurance companies are shaping the laws that decide how much they can charge you  and how little they’re required to cover. The moves look subtle on paper, but the impact hits your wallet directly. Let’s break thi

Foreclosure is a stressful experience, but understanding your legal rights can be the first step to protecting your home and your...