Call Us At: 713-547-5460
Do you pay your property taxes on time, every time?
If you don’t, then the Texas Tax Code (Section 34) allows taxing entities (county, city, school, etc.) to sell the property to regain your unpaid tax. But it’s unlikely that the tax you owe is equivalent to the amount investors will pay at auction.
What happens to the extra money from the sale?
The tax foreclosure excess funds remain with the agency that sold your property. To get them back, you must petition the agency in court.
Here’s what you need to know about accessing excess funds from your tax foreclosure sale.
Let’s say you owe $16,000 in property taxes to the county. You can’t pay, so the county sells your property in its
annual tax sale. When the county sells the property, it only needs to generate the $16,000 in due tax. Anything on top of that is of no real concern for the county. That means if your house is worth $150,000, the county can sell it for $20,000 if that’s the top offer they get. Why don’t they make an effort of turning a profit? First, it’s not their role – and investors who use these auctions go for cheap properties. Second, the extra funds (or surplus/ overages) belong to the last owner of the property before sale, which is you.
The tricky part of the notice is that you only have two years to respond and initiate the claim in court.
If you don’t respond, the county (or tax authority) keeps your excess permanently (unless you get a court order).
Why is this a problem? Because many people don’t realize they can claim back the excess, and by the time they understand what happened, the clock has run out.
Even once you initiate your claim, it can take years for the process to play out, unless you hire a lawyer to represent you.
If the county sold your house to recover back taxes and the sale generated excess funds over $25, then you have two years to claim the money.
However, you may benefit from the help of a lawyer if you want to see your money sooner than 2025.
Do you have questions about the tax foreclosure process or excess funds?
Get in touch to learn more about your rights after a tax auction.
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.
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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.
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