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 Wichita Falls Texas Petition for Release of Excess Proceeds and Notice of Hearing is a legal document that serves as a formal request for the return of surplus funds resulting from a property foreclosure sale in Wichita Falls, Texas. This petition aims to regain the excess funds to the rightful owner or claimant and initiate a legal hearing to determine the appropriate distribution. In cases where a property is sold at a foreclosure auction for an amount exceeding the outstanding debt, the surplus, or excess proceeds, are held by the court. The Petition for Release of Excess Proceeds is filed by individuals or entities with a legal interest in the property, such as the former homeowner or lien holders, seeking to obtain those excess funds. There are different types of Petitions for Release of Excess Proceeds and Notice of Hearing that may be relevant in the context of Wichita Falls, Texas. Some of these variations include: 1. Individual Petition for Release of Excess Proceeds: This type of petition is filed by an individual who was the former homeowner of the foreclosed property, aiming to secure the surplus funds resulting from the sale. 2. Lien holder's Petition for Release of Excess Proceeds: Lien holders, such as mortgage lenders or judgment creditors, can file this petition to claim the excess proceeds that match their legal interest in the property. 3. Joint Petition for Release of Excess Proceeds: Multiple parties, such as former homeowners and lien holders, can file a joint petition to request the court's assistance in allocating the excess funds according to their respective interests. 4. Notice of Hearing: Alongside the Petition for Release of Excess Proceeds, a Notice of Hearing is submitted to inform interested parties about the forthcoming legal hearing where the distribution of surplus funds will be deliberated. In order to navigate through the complexity of the Wichita Falls Texas Petition for Release of Excess Proceeds and Notice of Hearing, it is advisable to consult an experienced attorney familiar with foreclosure laws in Texas. This legal professional can guide individuals or entities through the necessary steps to file a comprehensive petition and represent their interests effectively in court.
