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 San Antonio Texas Petition for Release of Excess Proceeds and Notice of Hearing is a legal document filed by individuals or entities seeking to claim any remaining funds from a foreclosure sale that exceed the amount owed on the mortgage or lien. The Petition for Release of Excess Proceeds is typically initiated by the property owner or lien holder who has an interest in the property. It serves as a formal request to the court for the release of any surplus funds resulting from the foreclosure sale. This petition is essential for recovering the excess proceeds and ensuring fair distribution among the parties involved. The Notice of Hearing is an integral part of the petition process, as it alerts all concerned parties about the upcoming court hearing. It provides the date, time, and place of the hearing, where the judge will assess the merits of the petition and make a decision regarding the release of excess proceeds. The notice is published to ensure that all parties who may have a claim or interest in the funds are aware of the proceedings. There may be different types of San Antonio Texas Petition for Release of Excess Proceeds and Notice of Hearing, depending on the specific circumstances and parties involved. For instance, a homeowner who has lost their property to foreclosure may file a petition to claim the excess proceeds. Similarly, a mortgage lender or lien holder who is owed more than the amount recovered from the foreclosure sale may also file a petition to request the surplus funds. These different scenarios may require separate petitions to be filed, each with their respective notice of hearing. Overall, the San Antonio Texas Petition for Release of Excess Proceeds and Notice of Hearing is a critical legal process that ensures the fair distribution of surplus funds resulting from a foreclosure sale. It provides an opportunity for property owners, lien holders, or other interested parties to recover any remaining funds proportionate to their rights and claims.
