Texas at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | Texas allows foreclosure without a court case under a power of sale in a deed of trust: the sale must be a public auction held between 10 a.m. and 4 p.m. on the first Tuesday of a month, after at least 21 days' notice, and for a residence the borrower must first get a default notice giving at least 20 days to cure. Texas law also recognizes a lawsuit to foreclose a real property lien. Tex. Prop. Code §51.002(a), (b), (d); Tex. Civ. Prac. & Rem. Code §16.035(a)-(b) Show the source textsale of real property under a power of sale conferred by a deed of trust or other contract lien must be a public sale at auction held between 10 a.m. and 4 p.m. of the first Tuesday of a month |
| Who holds foreclosure surplus | When residential real property is sold at a trustee's sale under a power of sale, the trustee or substitute trustee must keep the money received at the sale in a separate account until it is distributed and must make reasonable attempts to identify and locate the persons entitled to the proceeds. The trustee may take reasonable costs and fees out of proceeds above the payoff of the foreclosed lien, and may instead file an interpleader action or deposit the funds in a court registry. Tex. Bus. & Com. Code §22.006(a)-(d), (f); Tex. Bus. & Com. Code §22.002 Show the source textThe trustee or substitute trustee shall ensure that funds received at the sale are maintained in a separate account until distributed. |
| Claim window for foreclosure surplus | The Texas statutes we read on foreclosure sale proceeds (Business and Commerce Code chapter 22 and Property Code chapter 51) do not set a deadline for claiming surplus from a trustee. Separately, Texas's general unclaimed property law presumes personal property abandoned when, for longer than three years, the holder does not know where the owner is and no claim or act of ownership has been made. Tex. Prop. Code §72.101(a) Show the source textpersonal property is presumed abandoned if, for longer than three years: (1) the location of the owner of the property is unknown to the holder of the property |
| Tax sale excess proceeds | Texas sells the property itself at a tax sale held under a court's order of sale or a tax warrant, and the buyer receives a deed; the former owner may redeem within two years after the buyer's deed is recorded if the property was a residence homestead, agricultural land or a mineral interest, and within 180 days for other property. The officer who conducts the sale pays any excess proceeds to the clerk of the court, who must mail a notice to the former owner within 31 days if the excess is more than $25 and must keep the money for two years after the sale. A claim is made by filing a petition in that court before the second anniversary of the sale, and if no one establishes a claim in that time the clerk distributes the money to the taxing units. Tex. Tax Code §34.02(d); §34.03(a)-(b); §34.04(a), (c); §34.21(a), (e) Show the source textregardless of the amount, keep the excess proceeds paid into court as provided by Section 34.02(d) for a period of two years after the date of the sale unless otherwise ordered by the court |
| Redemption after the sale | We found no Texas statute that gives a former owner a right to redeem after a deed of trust (mortgage) foreclosure sale; Property Code chapter 51, which governs those sales, does not mention redemption. Texas statutes do give a right to redeem after two other kinds of sale: after a property owners' association forecloses its assessment lien, the owner may redeem until the 180th day after the association mails written notice of the sale, and after a tax sale the owner may redeem within two years (residence homestead, agricultural land, mineral interest) or 180 days (other property) after the deed is recorded. Tex. Prop. Code §209.011(b); Tex. Tax Code §34.21(a), (e) Show the source textmay redeem the property from any purchaser at a sale foreclosing a property owners' association's assessment lien not later than the 180th day after the date the association mails written notice of the sale |
| Rules for recovery companies | Texas has three sets of rules. Tax sale excess proceeds: an attorney's fee to obtain excess proceeds for an owner may not be more than 25 percent of the amount obtained or $1,000, whichever is less, a person who is not an attorney may not charge a fee at all, and an assignment of the owner's claim is valid only under strict conditions, including a written, sworn document made on or after the 36th day after the money was deposited with the court, no in-person or telephone solicitation, and payment to the owner of at least 80 percent of the claim on that day. Foreclosure surplus: a person who for compensation helps a homeowner obtain excess proceeds from a foreclosure sale of the homeowner's residence is a 'foreclosure consultant', who must use a written, signed contract with a required cancellation notice, may not be paid until every promised service is fully performed unless bonded, and may not take a power of attorney except to inspect documents; a Texas attorney acting within an attorney-client relationship with the homeowner is generally exempt. Property reported to the Comptroller as unclaimed: a person who informs a claimant about the property may not charge more than 10 percent of the value recovered, plus reasonable attorney's fees necessary to pursue the claim. Tex. Tax Code §34.04(f)-(j); Tex. Bus. & Com. Code §21.001(a)(1)(I), §21.002, §21.051, §21.052, §21.101, §21.102, §21.151; Tex. Prop. Code §74.507 Show the source textA fee charged by an attorney to obtain excess proceeds for an owner may not be greater than 25 percent of the amount obtained or $1,000, whichever is less. |
How surplus funds arise in Texas
When a home in Texas is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in Texas
We confirm the sale figures in the public record, identify which office in Texas is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In Texas that program is the Texas Unclaimed Property, Texas Comptroller of Public Accounts (ClaimItTexas.gov).
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Texas law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in Texas
Texas regulates this kind of service. Texas has three sets of rules. Tax sale excess proceeds: an attorney's fee to obtain excess proceeds for an owner may not be more than 25 percent of the amount obtained or $1,000, whichever is less, a person who is not an attorney may not charge a fee at all, and an assignment of the owner's claim is valid only under strict conditions, including a written, sworn document made on or after the 36th day after the money was deposited with the court, no in-person or telephone solicitation, and payment to the owner of at least 80 percent of the claim on that day. Foreclosure surplus: a person who for compensation helps a homeowner obtain excess proceeds from a foreclosure sale of the homeowner's residence is a 'foreclosure consultant', who must use a written, signed contract with a required cancellation notice, may not be paid until every promised service is fully performed unless bonded, and may not take a power of attorney except to inspect documents; a Texas attorney acting within an attorney-client relationship with the homeowner is generally exempt. Property reported to the Comptroller as unclaimed: a person who informs a claimant about the property may not charge more than 10 percent of the value recovered, plus reasonable attorney's fees necessary to pursue the claim. (Tex. Tax Code §34.04(f)-(j); Tex. Bus. & Com. Code §21.001(a)(1)(I), §21.002, §21.051, §21.052, §21.101, §21.102, §21.151; Tex. Prop. Code §74.507)
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in Texas
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for Texas, from locating the funds to filing the claim.
When residential real property is sold at a trustee's sale under a power of sale, the trustee or substitute trustee must keep the money received at the sale in a separate account until it is distributed and must make reasonable attempts to identify and locate the persons entitled to the proceeds. The trustee may take reasonable costs and fees out of proceeds above the payoff of the foreclosed lien, and may instead file an interpleader action or deposit the funds in a court registry.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.