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.
Abilene Texas Petition for Release of Excess Proceeds and Notice of Hearing is a legal document that individuals or entities can use to claim any remaining funds from a foreclosure sale of a property in Abilene, Texas. This petition is typically filed with the court that handled the foreclosure proceedings. By submitting this petition, claimants can request that the court releases the excess proceeds from the sale, which refers to the surplus money generated from the sale of the property, exceeding the amount needed to satisfy the debt owed to the foreclosing lender. Some variations or types of Abilene Texas Petition for Release of Excess Proceeds and Notice of Hearing may include: 1. Individual Petition for Release of Excess Proceeds and Notice of Hearing: When an individual, such as the previous homeowner who experienced foreclosure, wishes to claim the excess proceeds, they can file this specific petition. In this case, the individual needs to prove their entitlement to the surplus funds, which could involve providing pertinent documentation, such as proof of ownership or loan information. 2. Lien holder Petition for Release of Excess Proceeds and Notice of Hearing: If a party holds a valid lien against the foreclosed property, they may file this type of petition. Lien holders can be individuals or entities that have a legal claim to a portion of the excess proceeds arising from the sale. They must provide evidence substantiating their lien and establish their right to participate in the distribution of funds. 3. Third-party Purchaser Petition for Release of Excess Proceeds and Notice of Hearing: When an individual or entity, apart from the foreclosing lender, purchases the property at the foreclosure sale, they might file this specific petition. The third-party purchaser must demonstrate their eligibility to claim the excess proceeds, usually by showcasing proof of their purchase, the amount paid, and any subsequent investments made to improve the property. The Abilene Texas Petition for Release of Excess Proceeds and Notice of Hearing is an essential legal mechanism that ensures transparency and fairness in the distribution of surplus funds resulting from foreclosure sales. It enables individuals, lien holders, and third-party purchasers to assert their rights to any remaining funds and request a court hearing for the release of these proceeds.
