Sec. 34.04 of the Texas Tax Code provides in part as follows:
(a) A person, including a taxing unit, may file a petition in the court that ordered the seizure or sale setting forth a claim to the excess proceeds. The petition must be filed before the second anniversary of the date of the sale of the property. The petition is not required to be filed as an original suit separate from the underlying suit for seizure of the property or foreclosure of a tax lien on the property but may be filed under the cause number of the underlying suit.
(b) A copy of the petition shall be served, in the manner prescribed by Rule 21a, Texas Rules of Civil Procedure, as amended, or that rule's successor, on all parties to the underlying action not later than the 20th day before the date set for a hearing on the petition.
(c) At the hearing the court shall order that the proceeds be paid according to the following priorities to each party that establishes its claim to the proceeds:
(1) to the tax sale purchaser if the tax sale has been adjudged to be void and the purchaser has prevailed in an action against the taxing units under Section 34.07(d) by final judgment;
(2) to a taxing unit for any taxes, penalties, or interest that have become due or delinquent on the subject property subsequent to the date of the judgment or that were omitted from the judgment by accident or mistake;
(3) to any other lienholder, consensual or otherwise, for the amount due under a lien, in accordance with the priorities established by applicable law;
(4) to a taxing unit for any unpaid taxes, penalties, interest, or other amounts adjudged due under the judgment that were not satisfied from the proceeds from the tax sale; and
(5) to each former owner of the property, as the interest of each may appear.
(d) Interest or costs may not be allowed under this section.
(e) An order under this section is appealable.
The Corpus Christi Texas Petition for Release of Excess Proceeds and Notice of Hearing serves as a legal document in the state of Texas that allows individuals or parties involved in a foreclosure or tax sale to request the release of any excess funds remaining from the sale of the property. This petition is typically filed with the court to initiate the process of obtaining the funds. In Corpus Christi, Texas, there are primarily two types of petitions related to the release of excess proceeds and notice of hearing: the Petition for Release of Excess Proceeds from Foreclosure Sale and the Petition for Release of Excess Proceeds from Tax Sale. Each petition serves a distinct purpose and follows slightly different procedures. The Petition for Release of Excess Proceeds from Foreclosure Sale applies to situations where a property has been foreclosed upon by a mortgage lender or lien holder. This petition gives the former property owner, or any other interested party, the opportunity to claim any money left from the sale of the property after satisfying the outstanding mortgage and other related expenses. The Petition for Release of Excess Proceeds from Tax Sale, on the other hand, is applicable in cases where a property has been sold at a tax auction due to unpaid property taxes. This petition allows the previous property owner or any other interested party to request the release of any remaining funds once the outstanding taxes and costs associated with the sale have been settled. Once the appropriate petition is filed with the court, a notice of hearing is typically scheduled. The notice serves to inform interested parties, including the former property owner, any lien holders, and other potential claimants, about the upcoming hearing. It provides them with an opportunity to attend the hearing and present any objections or claims to the excess proceeds. During the hearing, the judge will review the petition and any objections or claims made by interested parties. The judge will also consider relevant documents, such as the foreclosure or tax sale records, to determine the validity of the claims. After careful evaluation, a decision will be made regarding the release of the excess funds. If approved, the court will issue an order instructing the appropriate entity, such as the county clerk or treasurer, to distribute the excess proceeds to the entitled party or parties. In summary, the Corpus Christi Texas Petition for Release of Excess Proceeds and Notice of Hearing is a crucial legal process that allows individuals or concerned parties to seek the release of surplus funds after a property foreclosure or tax sale. By filing the appropriate petition and attending the scheduled hearing, interested parties can potentially regain their portion of the excess proceeds resulting from the sale.
