How Long Do You Have to Claim Surplus Funds in Texas?

In Texas, property owners or other eligible claimants have two years to claim surplus funds (excess proceeds) from a foreclosure sale. If the funds are not claimed within this period, they may be forfeited and escheated to the state.

If you’ve recently faced foreclosure in Texas, you might be entitled to surplus funds from the sale of your property. These funds, also known as excess proceeds, are the amount remaining after the mortgage and other liens have been paid off. Understanding the timeline for claiming these funds is crucial to ensure you don’t miss out on money that rightfully belongs to you.

### Claiming Surplus Funds: The Two-Year Rule

In Texas, the law stipulates that property owners or other eligible claimants have two years from the date of the foreclosure sale to claim surplus funds. This period is designed to give former property owners ample time to discover and pursue their claim. However, it’s essential to act promptly and avoid unnecessary delays to secure your funds.

### Who Can Claim the Surplus Funds?

Surplus funds can be claimed by various parties, including:

- The Former Property Owner: The most common claimant is the individual or entity that owned the property before the foreclosure sale.

- Junior Lienholders: These are lenders or entities that had secondary liens on the property. They are entitled to the surplus funds after the primary mortgage has been satisfied.

- Heirs or Assigns: In the case of a deceased property owner, heirs or designated assigns may claim the surplus funds.

### Steps to Claim Your Surplus Funds

1. Identify the Surplus: After a foreclosure sale, check with the county clerk’s office to determine if there are surplus funds available from the sale of your property.

2. File a Claim: Submit a formal claim to the trustee or county where the foreclosure sale occurred. Ensure you provide all required documentation to support your claim, including proof of ownership or lien interest.

3. Wait for Processing: Once your claim is submitted, it will be reviewed by the trustee or appropriate authority. This process can take several weeks or even months, so patience is essential.

4. Receive Your Funds: If your claim is approved, you will receive the surplus funds. Make sure you have a plan for how you will use or invest this money wisely.

### Why You Should Act Quickly

If you do not claim the surplus funds within the two-year window, the money may be forfeited and escheated to the state. Once this happens, reclaiming the funds becomes significantly more challenging and time-consuming.

### Need Help?

Navigating the process of claiming surplus funds can be complex. At National Overages Finders Alliance, we specialize in helping individuals like you recover excess proceeds from foreclosure sales. Our experienced team can guide you through each step, ensuring your claim is handled efficiently and effectively.

Contact us today to learn more about how we can assist you in claiming your rightful surplus funds. Don’t let time run out on money that belongs to you!