After the sale & special situations

Surplus (excess) funds after a sale

If the sale brought more than the debt and costs, money may be left over. Texas has no statute for trustee-sale surplus; the deed of trust controls, and junior lienholders are usually paid before the former owner.

• Ask the substitute trustee in writing for the sale price, the amount credited to the debt, and whether excess proceeds exist.
• You do not need to pay anyone to claim your own money. A paid “surplus recovery” helper is a foreclosure consultant under Texas law (Bus. & Com. Code § 21.001).
• Property-tax sales follow a different rule (Tax Code) — ask the district clerk.

Tex. Bus. & Com. Code § 21.001(a)(1)(I)

Eviction timeline after a foreclosure sale (Texas)

A foreclosure sale does not let anyone remove you the same day. The new owner must give notice, file in justice court and win before a constable can act. The 2025 law (S.B. 38) made the court steps faster starting January 1, 2026.

1. After the sale

   Written notice to vacate: at least 3 days for a former owner (Prop. Code § 24.005(b)).

2. Suit filed

   If the petition includes a motion for summary disposition, a response is due by the 4th day after service (§ 24.005106).

3. Trial

   Set 10–21 days after filing when facts are disputed (§ 24.005106(c)).

4. Appeal

   Within 5 days after the judgment is signed (§ 24.005107).

5. Writ of possession

   Not before the 6th day after judgment; the officer posts a warning at least 24 hours before executing it (§ 24.0061).

• Answer every court paper on time and go to the hearing; a missed deadline can mean a quick judgment.
• Free legal aid can help with eviction cases — call early.

Tex. Prop. Code § 24.005 · Tex. Prop. Code § 24.005106 · Tex. Prop. Code § 24.005107 · Tex. Prop. Code § 24.0061

Tenants in a foreclosed home

A tenant who pays rent on time usually gets more time than a former owner.

• Texas: a residential tenant who is current gets at least 30 days’ written notice if the purchaser ends the lease (Prop. Code § 24.005(b)).
• Federal law (Protecting Tenants at Foreclosure Act) gives many bona fide tenants 90 days’ notice or the rest of the lease; Texas law says a writ cannot be served before a federal notice period runs (§ 24.005(c-1)). Confirm with legal aid.
• Keep paying rent as the notice directs and keep receipts.

Tex. Prop. Code § 24.005(b), (c-1)

Heirs and successors in interest

If you received the home when a borrower died (or through divorce or a family transfer), you can ask the servicer to confirm you as a successor in interest. Once confirmed, you are treated as a borrower for the servicing rules — including loss mitigation.

• Send a written notice with your relationship and ask what documents they need to confirm you (for example, death certificate, will or small-estate affidavit, heirship affidavit).
• The servicer must promptly tell you which documents it needs and then promptly decide (12 C.F.R. § 1024.38(b)(1)(vi)).
• Probate questions go to a lawyer or legal aid; the Texas “heirship” process has its own steps.

12 C.F.R. § 1024.30(d) · 12 C.F.R. § 1024.38(b)(1)(vi)

Divorce or separation

A divorce decree can give the home to one spouse, but the loan does not change by itself. The spouse who keeps the home can ask to be confirmed as a successor in interest and apply for help.

• Send the servicer the decree and ask for its successor-in-interest document list.
• Both names may stay on the loan until it is refinanced or assumed; late payments can affect both.

12 C.F.R. § 1024.31 (successor in interest)

Military servicemembers

Federal and Texas law add protections for people on active duty and for a period after it ends.

• SCRA (50 U.S.C. § 3953): for a loan taken before service, a sale during service or within one year after is not valid without a court order (or a written waiver agreement).
• Texas Prop. Code § 51.015: courts may stay or adjust during active duty and for nine months after.
• Every Texas notice of sale must tell you to send written notice of active-duty service (§ 51.002(i)). Do it, in writing, and keep proof.
• Free help: your installation’s legal assistance office.

50 U.S.C. § 3953 · Tex. Prop. Code § 51.015 · Tex. Prop. Code § 51.002(i)

Older homeowners and reverse mortgages

A Texas reverse mortgage (borrower or spouse 62+) is non-recourse, but it can still come due if taxes or insurance go unpaid, the borrower moves out, or the last borrower dies. Foreclosure of a reverse mortgage that requires a court order follows the expedited court rules.

• Unpaid property taxes or insurance are the most common trigger — ask the servicer about a repayment plan right away.
• Texas property-tax deferral may be available for homeowners 65+ or disabled — see Tax help.
• Heirs usually have options to pay off, sell, or give up the home; ask the servicer for the timeline in writing.

Tex. Const. art. XVI, § 50(k) · Tex. Const. art. XVI, § 50(r)

HOA foreclosure path (Texas)

An HOA can foreclose its assessment lien only through a court process, not for fines alone, and after a sale you have a right to buy the home back.

• No foreclosure if the debt is only fines or attorney’s fees tied to fines (Prop. Code § 209.009).
• The HOA needs an expedited court order or a judicial foreclosure (§ 209.0092), and must first give inferior deed-of-trust lienholders notice and 61 days to cure (§ 209.0091).
• Before charging collection-agent fees, the HOA must send a certified letter giving at least 45 days to cure and describing any payment plan (§ 209.0064).
• After a sale: notice within 30 days (§ 209.010), and you may redeem within 180 days after the HOA mails that notice (§ 209.011).

Tex. Prop. Code §§ 209.0064, 209.009, 209.0091, 209.0092, 209.010, 209.011