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How to claim foreclosure surplus funds in Texas

After a Texas trustee's sale, any money left after the loan, costs and fees are paid is surplus, also called excess proceeds. The trustee or substitute trustee holds it, must look for the people entitled to it, and pays other lienholders before you. Texas has no state claim form for this money, so you usually claim it by writing to the trustee.

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Reviewed against Texas law and official sources on October 11, 2026. General information, not legal advice.

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How to claim surplus funds in Texas

  1. The trustee holds the money and must look for you

    From the day of the sale

    The trustee must keep the sale money in a separate account, keep a written record of deposits and payments, and make reasonable attempts to find everyone entitled to part of it. Make sure the trustee has your current mailing address.

    Tex. Bus. & Com. Code § 22.006(a), (b)

  2. Send a written claim to the trustee

    As soon as possible after the sale

    The notice of sale must list the trustee's name and street address. Write to that address, ask for an accounting of the sale, and include proof that you owned the home, a copy of your ID, and where to send payment.

    Tex. Prop. Code § 51.0075(e); Tex. Bus. & Com. Code § 22.006

  3. Other liens are paid before you

    Before any money is paid to you

    The trustee decides the priority of claims. A second mortgage, home equity line, HOA lien or recorded judgment lien is usually paid out of the surplus before the former owner gets anything.

    Tex. Bus. & Com. Code § 22.006(c)

  4. Trustee fees come out of the surplus

    Earned at the sale

    The trustee can take reasonable costs and fees from the surplus. A trustee fee of up to 2.5 percent of the sale proceeds or $5,000, whichever is less, and an attorney fee of up to 1.5 percent to sort out claims, are treated as reasonable by law.

    Tex. Bus. & Com. Code § 22.006(c), (d)

  5. If the money is sent to a court or the state

    If claims conflict or no one can be found

    The trustee may file an interpleader case or deposit the money in a court registry, and then you file your claim in that court case. Money no one claims may end up with the Texas Comptroller's unclaimed property program, which you can search for free.

    Tex. Bus. & Com. Code § 22.006(f)

  6. Be careful with surplus recovery offers

    We found no Texas law that caps the fee a company can charge to collect mortgage surplus from a trustee, so read any contract closely and do not sign over your claim before you ask the trustee yourself. The strict fee limits in the Tax Code apply only to excess proceeds from tax sales.

  7. Surplus after a property tax sale

    Claim within 2 years of a tax sale

    Money left over after a property tax foreclosure sale follows different rules: the court clerk holds it and you file a petition in court. See our Texas property tax foreclosure page for the steps.

    Tex. Tax Code § 34.04

What Texas law says about leftover sale money

Surplus after a mortgage foreclosure sale

If the trustee's sale brings in more than you owe, the extra money (surplus) belongs first to any other lienholders and then to you. Texas law requires the trustee to keep the sale money in a separate account, keep a record of it, and make reasonable efforts to find the people entitled to the surplus. The trustee can take reasonable fees and costs out of the surplus, and a fee of up to 2.5 percent or $5,000, whichever is less, is presumed reasonable. Write to the trustee named in your notice of sale to claim it, and ask legal aid for help. Ignore companies that offer to recover it for a share.

Tex. Prop. Code § 51.0075(f); Tex. Bus. & Com. Code § 22.006

Common questions in Texas

Is there a deadline to claim Texas mortgage foreclosure surplus from the trustee?

We did not find a deadline in Texas law for claiming surplus from a trustee. That does not mean you can wait: the trustee may move the money into a court case or it may be reported as unclaimed property. Write to the trustee as soon as you can after the sale.

Can the Texas trustee keep part of my surplus as a fee?

Yes. Texas law lets the trustee take reasonable costs, a trustee fee and attorney's fees from money above the loan payoff. A trustee fee up to the lesser of 2.5 percent or $5,000 is conclusively presumed reasonable. Ask for a written accounting so you can see every charge.

The trustee put my Texas surplus in a court registry. What now?

That means a court will decide who gets the money. Find the case in the county or district clerk's records, then file your claim or answer in that case with proof of ownership. Free legal aid can help if a lender or another lienholder is also claiming the money.

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Also in Texas

Property tax foreclosure Claim surplus funds (this page)

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Sources for this page

  1. Texas Tax Code Chapter 31, Collections
  2. Texas Tax Code Chapter 33, Delinquency
  3. Texas Tax Code Chapter 34, Tax Sales and Redemption
  4. ClaimItTexas, Texas Comptroller unclaimed property search
  5. Texas Property Code Chapter 51 (liens and foreclosure sales)
  6. Texas Property Code Chapter 24 (forcible entry and detainer)
  7. Texas Business and Commerce Code Chapter 21 (foreclosure consulting services)
  8. Supreme Court of Texas, Misc. Docket No. 11-9256, final approval of Rules 735 and 736
  9. Texas State Law Library: Foreclosure guide
  10. Texas State Law Library: Foreclosure, Before the Sale
  11. Texas State Law Library: Foreclosure, After the Sale
  12. TDHCA: Homeowner Assistance Fund (HAF) Program
  13. Texas Business and Commerce Code Chapter 22, public sale of residential real property under power of sale