Property Tax Loan Foreclosure Process
Note: The Texas Supreme Court, pursuant to Acts 2013, 83d Leg., R.S., ch. 1044 (H.B. 2978) and section 22.018 of the Texas Government Code, has issued a set of promulgated forms for use in expedited foreclosure proceedings under rule 736 of the Texas Rules of Civil Procedure. (See Misc. Docket No. 14-9047.) The comments in this chapter are based on rule 736, but the reader is advised to use the forms promulgated by the Texas Supreme Court (some of which, but not all, are referenced in this chapter). The forms can also be found on the Texas Supreme Court website at www.txcourts.gov/supreme. For additional information on the use of the promulgated forms, see G. Tommy Bastian, Rule 736 Promulgated Forms, in State Bar of Texas, Advanced Real Estate Drafting Course (2014).
A property owner may authorize a transferee, as defined in Tex. Tax Code § 32.06(a)(2), or a property tax lender, as defined in Tex. Fin. Code § 351.002(1), to pay the taxes imposed by a taxing unit on the taxpayer’s real property based on a sworn authorization document prepared in accordance with Tex. Tax Code § 32.06(a–1). Once the transferee or property tax lender pays the taxes and all penalties and interest imposed on the taxpayer’s property, the tax collector issues a certified statement and a receipt for payment of the taxes that transfers the taxing unit’s lien to the person paying the taxpayer’s taxes. See Tex. Tax Code § 32.06(b). The transferee must send a copy of the certified statement within ten business days of receipt to the first lienholders pursuant to Tex. Tax Code § 32.06(b–1).
In consideration for the property tax loan, a taxpayer executes a note and contract secured by the taxpayer’s property. This contract is usually in the form of a deed of trust or contract for foreclosure of the tax lien or a similar security lien instrument executed by the property owner and filed in the real property records, along with the sworn authorization and certified statement, of each county in which the property encumbered by the lien is located.
If the taxpayer fails to pay the property tax loan lien, the transferee of the tax lien (or any successor in interest) is entitled to judicially foreclose the lien pursuant to Tex. Tax Code ch. 33 or nonjudicially foreclose pursuant to Tex. Prop. Code § 51.002 and Tex. Tax Code § 32.065 if the property tax loan contract contains a power of sale and was executed before May 29, 2013, and the transferee or its successor in interest obtains a court order for foreclosure under rule 736 of the Texas Rules of Civil Procedure.
Transferred tax liens are afforded superpriority status pursuant to Tex. Tax Code § 32.05 and take priority over preexisting mortgages and most other liens, regardless of when they are recorded.
May 29, 2013, is an important date because any property tax or transferred tax lien loan originated after this date must be judicially foreclosed in accordance with Texas Tax Code chapter 33. See Acts 2013, 83d Leg., R.S., § 8 (S.B. 247), eff. May 29, 2013 (amending Tex. Tax Code § 32.06(c)).
The amendment to Tex. Tax Code § 32.06(c), which previously allowed property tax lenders to nonjudicially foreclose, terminated the applicability of Tex. Tax Code § 32.065, which provided the framework for conducting a nonjudicial foreclosure of a transferred tax lien under Tex. Prop. Code § 51.002.
As a practical matter, since nonjudicial foreclosure of a transferred tax lien originated before May 29, 2013, is generally slower, more expensive, and burdensome, and subject to more litigation risk than a judicial foreclosure, most property tax loans will probably be judicially foreclosed under chapter 33 of the Texas Tax Code.
See chapter 20 in this manual for an overview of the judicial foreclosure process and chapter 24 for an overview of the ad valorem tax lien foreclosure process.
§ 25.2Property Tax Loan Foreclosures after May 29, 2013
The 2013 amendments to Texas Tax Code section 32.06(c), resulting from S.B. 247, eliminated the ability of a property tax loan or transferred tax lender to nonjudicially foreclose a property tax loan made on or after May 29, 2013. The bill eliminated certain provisions of section 32.06, primarily sections 32.06(c)(2) and (c–1), and effectively killed section 32.065 in its entirety. Furthermore, there will be no need for a power of sale clause in a property tax loan security instrument or deed of trust since Texas Tax Code chapter 33 does not allow a trustee or substitute trustee to conduct a foreclosure sale under Texas Property Code chapter 51.
§ 25.3Foreclosures of Property Tax Loans after September 1, 2007, and before May 29, 2013
If a person seeks to foreclose a property tax loan lien originated after September 1, 2007, and before May 29, 2013, the mortgagee must comply with the amendments to Texas Rules of Civil Procedure 735 and 736 and Texas Tax Code sections 32.06 and 32.065 that were applicable at that time.
§ 25.3:1Rule 736.1 Application
Texas Rules of Civil Procedure rule 736.1, Application, reads as follows:
(a)Where Filed. An application for an expedited order allowing the foreclosure of a lien listed in Rule 735 to proceed must be filed in a county where all or part of the real property encumbered by the loan agreement, contract, or lien sought to be foreclosed is located or in a probate court with jurisdiction over proceedings involving the property.
(b)Style. An application must be styled “In re: Order for Foreclosure Concerning [state: property’s mailing address] under Tex. R. Civ. P. 736.”
(c)When Filed. An application may not be filed until the opportunity to cure has expired under applicable law and the loan agreement, contract, or lien sought to be foreclosed.
[Note: Pursuant to Texas Tax Code section 32.06(f), the holder of a loan secured by a transferred tax lien that is delinquent for ninety consecutive days must send a notice of the delinquency by certified mail on or before the 120th day of delinquency to any holder of a recorded preexisting lien on the property. The holder or mortgage servicer of a recorded preexisting lien is entitled, within six months after the date on which the note is sent, to obtain a release of the property tax lien by paying the amount owed under the contract.
After this notice has been sent, Texas Tax Code section 32.06(c–1)(C) then requires the tax lien transferee to give the property owner and each holder of a recorded first lien on the property notice to cure the default, notice of intent to accelerate, and notice of acceleration of the maturity of the debt in the manner required for notice to a debtor under section 51.002 of the Texas Property Code before it can file an application under rule 736. See chapters 8 and 12 in this manual for a review on how to properly draft and send the notice to cure the default, notice of intent to accelerate, and notice of acceleration of the maturity of the debt.]
(d)Contents. The application must:
(1)Identify by name and last known address each of the following parties:
(A)“Petitioner” - any person legally authorized to prosecute the foreclosure
[Note: The person filing the application is no longer referred to as the “applicant” but, rather, the “petitioner” under the January 1, 2012, amendments.
Texas Property Code section 51.0025 authorizes a mortgage servicer to administer the foreclosure of property under section 51.002 on behalf of a mortgagee if certain prerequisites are met, so presumably, a servicer for a tax lien transferee could be a “person legally authorized to prosecute the foreclosure” on behalf of the actual transferee.]
(B)“Respondent” - according to the records of the holder or servicer of the loan agreement, contract, or lien sought to be foreclosed;
. . .
(ii) for a tax lien transfer or property tax loan, each person obligated to pay the loan agreement, contract, or lien sought to be foreclosed, each mortgagor, if any, of the loan agreement, contract, or lien sought to be foreclosed, each owner of the property, and the holder of any recorded preexisting first lien secured by the property;
[Note: A careful examination of the current title to the property at the time the application is filed is necessary to comply with this provision. If, for example, the property was foreclosed by a preexisting lienholder and sold to a third party after the property tax loan was made, the new third-party purchaser should be the “owner” named in the application under this provision.
Practitioners in this field will soon discover that properly notifying the “holder of any recorded preexisting first lien secured by the property” is one of the most difficult, uncertain, and problematic tasks in conducting a nonjudicial transferred tax lien foreclosure under rule 736. A petitioner will probably have to obtain and rely on a third-party title run to ascertain whether there are any recorded preexisting first liens on the property. Mortgage liens are commonly assigned (and often times bundled), but the assignments are not always reported or disclosed on a standard title run, which usually only researches by grantor/grantee and not by legal description. Furthermore, many counties in Texas do not publish their deed records online (or do so for a fee), which makes locating mortgage assignments even more difficult.
Even if the mortgage has not been assigned, often times the last known address of the mortgagee, as depicted in the recorded preexisting lien instrument, is no longer a valid address. Is it reasonable then for a property tax lender to continue to send notices to a lienholder at an address that the lender knows will be returned as undeliverable? Although the Texas statutes are silent as to what additional reasonable steps could be expected or required of a lender in a situation where delivery was returned “undeliverable,” a practitioner should nonetheless use reasonable discretion on a case by case basis when attempting to provide notice under this section. See Jones v. Flowers, 547 U.S. 220 (2006); Krueger v. Swann, 604 S.W.2d 454 (Tex. App.—Tyler 1980, writ ref’d n.r.e.).]
(2)Identify the property encumbered by the loan agreement, contract, or lien sought to be foreclosed by its commonly known street address and legal description.
(3)Describe or state:
(A)the type of lien listed in Rule 735 sought to be foreclosed and its constitutional or statutory reference;
[Note: A general statement such as “the type of lien sought to be foreclosed under rule 735 is a tax lien transfer or property tax loan under sections 32.06 and 32.065 of the Texas Property Tax Code” should suffice for this requirement.]
(B)the authority of the party seeking foreclosure, whether as the servicer, beneficiary, lender, investor, property owners’ association, or other person with authority to prosecute the foreclosure;
(C)each person obligated to pay the loan agreement, contract, or lien sought to be foreclosed;
(D)each mortgagor, if any, of the loan agreement, contract, or lien sought to be foreclosed who is not a maker or assumer of the underlying debt;
[Note: The mortgagor and maker are not always the same parties. An underwriter may require that an additional party, who is not a maker of the note, but may have some proprietary interest in the property, also execute the deed of trust/contract for foreclosure. This party would be a mortgagor, but not a maker.]
(E)as of a date that is not more than sixty days prior to the date the application is filed:
(i)if the default is monetary, the number of unpaid scheduled payments,
(ii)if the default is monetary, the amount required to cure the default,
[Note: The 2012 amendments to rules 735 and 736 did not require a debt be accelerated before a rule 736 application could be filed, as was the case under the 1999 version of rules 735 and 736. The 2012 rule only required a borrower be given the opportunity to cure under statutory and applicable law. However, if the maturity of the debt has been accelerated, the amount to cure the default is the accelerated amount. See Hiller v. Prosper Tex, Inc., 437 S.W.2d 412 (Tex. App.—Houston [1st Dist.] 1969, no writ). It is probably best practice, however, to state the reinstatement amount in this section as it currently stands at the time the application is filed because the payoff amount required to be stated in rule 736.1(d)(E)(iv) should be effectively the accelerated amount, notwithstanding the acceleration.]
(iii)if the default is non-monetary, the facts creating the default, and
(iv)if applicable, the total amount required to pay off the loan agreement, contract or lien;
(F)that the requisite notice or notices to cure the default has or have been mailed to each person as required under applicable law and the loan agreement, contract, or lien sought to be foreclosed and that the opportunity to cure has expired; and
(G)that before the application was filed, any other action required under applicable law and the loan agreement, contract, or lien sought to be foreclosed was performed.
(4)For a tax lien transfer or property tax loan, state all allegations required to be contained in the application in accordance with section 32.06(c–1)(1) of the Tax Code.
[Note: This language is included in form 25-1 in this manual, Application for an Expedited Order Under Rule 736 on a Tax Lien Transfer or Property Tax Loan Created After September 1, 2007 and Before May 29, 2013, as promulgated by the Texas Supreme Court.]
(5)Conspicuously state:
(A)that legal action is not being sought against the occupant of the property unless the occupant is also named as a respondent in the application; and
(B)that if the petitioner obtains a court order, the petitioner will proceed with a foreclosure of the property in accordance with applicable law and the terms of the loan agreement, contract, or lien sought to be foreclosed.
(6)Include an affidavit of material facts in accordance with Rule 166a(f) signed by the petitioner or the servicer describing the basis for foreclosure and, depending on the type of lien sought to be foreclosed, attach a legible copy of:
[Note: Affidavits must meet the standard for a summary judgment affidavit that would be used in a judicial foreclosure or other summary judgment proceeding. At a minimum, affidavits must be based on personal knowledge of a witness competent to testify under penalty of perjury.]
(A)the note, original recorded lien . . . and current assignment of the lien, if assigned;
[Note: This requirement is premised on the assumption that the foreclosure process must be transparent and self-enforcing in that the foreclosure notices, note, security instrument, current assignment, and any other lien-specific documents required by statute are attached to the pleadings for court review.]
(B)each notice required to be mailed to any person under applicable law and the loan agreement, contract, or lien sought to be foreclosed before the application was filed and proof of mailing of each notice.
[Note: Obviously this provision requires the practitioner to attach to the application copies of the notice to cure the default, notice of intent to accelerate, and notice of acceleration of the maturity of the debt along with proof of mailing. Does this provision, however, also require the practitioner to attach copies of the initial ten-day notice under Texas Tax Code section
32.06(b–1), and the ninety-day notice under section 32.06(f) as well?
It is doubtful that the Texas Supreme Court intended that these two notices, which have no bearing on the foreclosure whatsoever, be attached to an application, but it’s a good example of how confusing the nonjudicial process has become. For example, if a transferred tax lender is unable to prove that it sent the initial ten-day notice to a preexisting lienholder at the inception of the lien, is the lender now forever barred from bringing a 736 application and performing a nonjudicial foreclosure of its tax lien? The answer is probably not. Texas Tax Code section 32.06(f–4) states that failure to comply with
(b–1), (f), or (f–1) does not invalidate a tax lien, a contract lien, or a deed of trust. Since the only real purpose of even having a contract lien or a deed of trust in a transferred tax lien setting (as previously discussed) is to allow for nonjudicial foreclosure, and noncompliance with these provisions does not invalidate a contract lien or a deed of trust, then a practitioner should still be able to bring an application under rule 736 and foreclose nonjudicially even without attaching these additional two notices.]
(C)for a tax lien transfer or property tax loan:
(i)the property owner’s sworn document required under section 32.06(c–1) of the Tax Code; and
(ii)the taxing authority’s certified statement attesting to the transfer of the lien, required under section 32.06(b) of the Tax Code.
[Note: This is not always a single, solitary document. Some taxing authorities (the school district, the city, the local college, etc.) may all individually issue their own certified statements for their portion of the applicable taxes to the transferee. All should be recorded and copies of all should be referenced in, and attached to, the application.]
See form 25-2, Affidavit in Support of Petitioner’s Application for an Expedited Order Under Rule 736, as promulgated by the Texas Supreme Court; alternatively, the practitioner may use form 25-3, Declaration in Support of Petitioner’s Application for an Expedited Order Under Rule 736, as promulgated by the Texas Supreme Court.
Before the 83rd legislative session, rule 736.3(b)(1) required the clerk of the court to send a citation and copy of the application to each applicable respondent and the occupant by both first-class mail and certified mail. Beginning June 14, 2013, as a result of House Bill 2978, the petitioner now has the option to complete service in accordance with Texas Rule of Civil Procedure 106 instead of rule 736.3. House Bill 2978 amended chapter 17 of the Texas Civil Practice and Remedies Code by adding section 17.031, which states:
For a power of sale exercised by the filing of an application for an expedited court order allowing the foreclosure of a contract lien under the Texas Rules of Civil Procedure 736, service of citation shall be completed in accordance with Rule 736 or 106, Texas Rules of Civil Procedure, or in any other manner provided for petitions under the Texas Rules of Civil Procedure.
Tex. Civ. Prac. & Rem. Code § 17.031.
Pursuant to the January 1, 2012, amendments to rules 735 and 736 of the Texas Rules of Civil Procedure, if the petitioner elects service under rule 736.3(b)(1), the clerk of the court in the county in which the application is filed is required to both prepare and serve by first-class and certified mail a citation on each person identified as a respondent in the application at the last known address stated in the application and to the “occupant” at the property mailing address. This means that the petitioner will need to supply the clerk with two copies of the application and all attached exhibits for each respondent served (one certified mail, one first-class mail) or pay the clerk’s copy charge per page. See Tex. R. Civ. P. 736.3(b)(1).
For example, if there are two borrower respondents (husband and wife), a new owner respondent (due to a foreclosure or deed transfer), a lienholder respondent, and the occupant, the petitioner will need to supply the clerk with ten copies of the application and requisite attached exhibits for service (in addition to the clerk’s copies and any returned filed stamped copies the petitioner will require). When considering all of the documentation that is required to be attached to an application under these recent amendments, one can easily see how this new process proves to be inefficient and has placed a tremendous burden on clerks just by way of sheer paper load alone. Alternatively, if the petitioner chooses instead to pay the clerk’s copy charge per page, the resulting fee will be significant given the number of pages attached to a rule 736 affidavit.
All filing, citation, mailing, service, and other court costs and fees are costs of court and must be paid by the petitioner at the time of filing an application with the clerk of the court. The fee for the service of citation is the same amount paid to a sheriff or constable to personally serve a citation. The unintended consequence of this new requirement is that it significantly increases a property owner’s indebtedness with little to no effect or purpose. Before the recent amendments, counsel for the petitioner was allowed to serve respondents with notice of the application via certified mail and first-class mail at seemingly minimal cost. The recent amendments, which require the same type of service (certified mail and first-class mail), but now through the clerk’s office, can cost hundreds of dollars that are immediately passed through to the debtor.
The service date is the date the clerk deposits the citation in the mail. Even if the designated recipient refuses to accept the notice or pick up his mail, there is a presumption that the citation was received nonetheless. The clerk is required to file a verified return of service that includes the certified mail return receipt unless certified mail was unsuccessful.
The clerk’s return of service must be on file for at least ten days before the court can enter an order granting the application.
Any respondent may file a response contesting the application. Tex. R. Civ. P. 736.5(a). Any response to the application is due the first Monday after the expiration of thirty-eight days from the date the citation was placed in the custody of the U.S. Postal Service in accordance with the clerk’s standard mailing procedures, as stated on the citation. Tex. R. Civ. P. 736.5(b).
A respondent may respond by general denial but must specifically plead the following affirmative defenses: (1) why the respondent believes a respondent did not sign a loan agreement document, if applicable, that is specifically identified by the respondent; (2) why the respondent is not obligated for payment of the lien; (3) why the number of months of alleged default or the reinstatement or pay-off amounts are materially incorrect; (4) why any document attached to the application is not a true and correct copy of the original; or (5) proof of payment in accordance with rule 95. See Tex. R. Civ. P. 736.5(c). A response, however, may not state an independent claim for relief, and the court is required, without a hearing, to strike and dismiss any counterclaim, crossclaim, third-party claim, intervention, or cause of action filed in an expedited nonjudicial foreclosure proceeding. Tex. R. Civ. P. 736.5(d).
When a borrower files a response, the court must hold a hearing, which must occur neither sooner than twenty days nor later than thirty days after any party requests a hearing. See Tex. R. Civ. P. 736.6. No discovery is permitted under rule 736. Tex. R. Civ. P. 736.4.
At the hearing, the only issue to be determined is whether the petitioner can obtain an order allowing foreclosure to proceed in accordance with Texas Property Code chapter 51. The petitioner has a burden to prove by affidavits on file or evidence presented at the hearing “the grounds for granting the order.” Tex. R. Civ. P. 736.6.
A court in which an application and a subsequent response have been filed may, in the court’s discretion, conduct a hearing to determine whether to order mediation. A court may not order mediation without first conducting a hearing. Alternatively, the petitioner or respondent may request a hearing to determine whether mediation is necessary. Tex. Civ. Prac. & Rem. Code § 154.028(a). The hearing may be conducted by telephone. Tex. Civ. Prac. & Rem. Code § 154.028(c).
If the parties cannot agree on a mediator, the court may appoint one. Tex. Civ. Prac. & Rem. Code § 154.028(g). The mediation fee is divided equally between the parties. Tex. Civ. Prac. & Rem. Code § 154.028(h). The parties may also agree to waive mediation. Tex. Civ. Prac. & Rem. Code § 154.028(i). If the court orders the case to mediation, the mediation must be conducted before the expiration of any deadline imposed by Texas Rule of Civil Procedure 736. Tex. Civ. Prac. & Rem. Code § 154.028(f).
A court may not conduct a mediation hearing if the citation was served in compliance with rule 106 of the Texas Rules of Civil Procedure, and a response has not been filed before the deadline provided by Texas Rule of Civil Procedure 736. Tex. Civ. Prac. & Rem. Code § 154.028(j).
However, Tex. Civ. Prac. & Rem. Code § 154.028(l) states, “If a respondent attends a hearing and mediation is ordered, any mediation must take place not later than the 29th day after the date the petitioner filed a motion for default order.” This seems to imply that the court can still order a mediation hearing if a respondent who is served with citation pursuant to Texas Rule of Civil Procedure 736 (via certified mail and regular mail through the clerk’s office), instead of rule 106, files a late response, even after a motion for default order has already been filed.
If a respondent fails to attend a mediation hearing after notice is given, the court may not order mediation and shall either grant or deny the petitioner’s motion for default order without the necessity of another subsequent hearing on the merits. Tex. Civ. Prac. & Rem. Code § 154.028(k).
One of the premised assumptions upon which the amended rules were drafted is that a petitioner is entitled to an order expeditiously and without hearing if the respondent fails to file an answer. As such, courts are prohibited from holding a hearing where no response is filed by the Monday next following thirty-eight days after the clerk served the citation.
After the respondent’s time to answer has passed, the petitioner may file a motion for a default order along with a proposed default order. Tex. R. Civ. P. 736.7(a). See form 25-4 in this chapter, Default Order, as promulgated by the Texas Supreme Court. Pursuant to the Servicemembers Civil Relief Act, the petitioner must also file an affidavit of nonmilitary status as to each of the respondents and should attach the corresponding Department of Defense printouts to the affidavit (the requisite printouts can be obtained at https://scra.dmdc.osd.mil/scra/#/home). See form 25-5, Military Status Affidavit, as promulgated by the Texas Supreme Court; alternatively, the practitioner may use form 25-6, Military Status Declaration, as promulgated by the Texas Supreme Court. (See chapter 33, which discusses the requirements of the Servicemembers Civil Relief Act in more detail.) A court must grant the application within thirty days of the date the default motion is filed if the court finds the application meets the pleading requirements and the petitioner “establishes the basis for foreclosure.” See Tex. R. Civ. P. 736.7(b); 736.8(a).
Notwithstanding, many judges in different counties simply ignore these provisions and still require that the petitioner appear for a hearing before they will sign a default order, despite the clear language instructing them not to do so. In their defense though, many judges are simply not familiar with the rule 736 expedited order procedure or the rules governing and fail to realize that unnecessarily forcing a petitioner to appear for a default hearing, contrary to the rules, only causes more indebtedness (by way of additional attorney’s fees and costs) to be added to a debtor’s account making it even more difficult for a debtor to cure or pay off their indebtedness before foreclosure. In many instances, a polite and informative follow-up letter (after you have filed your default motion and order) explaining the procedure, with a copy of the rule attached will persuade a hesitant judge to sign the default order without the necessity of a hearing.
As in the previous version of the rule, a foreclosure order is without prejudice, is not final, may not be appealed, and has no preclusive effect in any other proceeding. It is presumed then, that if an application is denied, the petitioner could simply file a new application (assuming the grounds for the previous denial were not due to a fatal defect in the petitioner’s ability to foreclose under rule 736).
After an order authorizing foreclosure has been granted, the respondent can challenge a foreclosure proceeding by filing an independent lawsuit, which operates like an automatic stay in bankruptcy. See Tex. R. Civ. P. 736.11.
§ 25.7Breach of Obligation in Loan Documents
After a rule 736 order authorizing the foreclosure of a transferred tax lien has been obtained, the transferee may proceed with a nonjudicial foreclosure of the lien in accordance with Texas Property Code chapter 51 and the terms of the lien sought to be foreclosed. Tex. R. Civ. P. 736.9. See chapters 11 and 21 in this manual for a review of the posting and notice procedures and requirements necessary to properly conduct a nonjudicial foreclosure sale under Texas Property Code chapter 51.
Regular foreclosure practices as required under the security instrument and Texas Property Code chapter 51 were not changed by the recent amendments to Texas Rules of Civil Procedure 735 and 736 and remain intact. However, sections 32.06 and 32.065 of the Texas Tax Code do add some additional requirements to the foreclosure sale notice provisions of Texas Property Code chapter 51.
After the nonjudicial foreclosure sale has been completed, the transferee must attach a copy of the order authorizing the foreclosure to the trustee’s deed when recording. An affidavit of the transferee executed and recorded after foreclosure that recites compliance with the terms of sections 32.06 and 32.065 of the Tax Code is prima facie evidence of compliance with sections 32.06 and 32.065 and may be relied on conclusively by a bona fide purchaser for value without notice of any failure to comply. See Tex. Tax Code § 32.065(h).
If the proceeds realized from the sale exceed the transferee’s payoff, the transferee is required to deposit the excess proceeds into the registry of the court that granted the foreclosure order, within ten days from the date of the sale, pursuant to section 34.021 of the Tax Code. See forms 25-7 and 25-8 in this chapter. Many registries, however, will only accept deposits by order of the court. It is highly unlikely that a transferee is going to be able to file a motion, obtain an order authorizing the deposit, and then actually tender the excess proceeds into the court registry all within ten days from the date of sale. Notwithstanding, the practitioner should comply with this requirement as quickly as practicable. The excess proceeds from the sale will be disbursed according to sections 34.03 and 34.04 of the Tax Code. See Tex. Tax Code §§ 34.03, 34.04.
Bastian, G. Tommy. “Expedited Foreclosure Home Equity, Home Equity Line of Credit, Reverse Mortgage, and Tax Lien Transfer and Property Tax Loan Forms for the New Supreme Court Rules.” In Advanced Real Estate Drafting Course, 2012. Austin: State Bar of Texas, 2012.
Bellamy, Brian S. “Expedited HOA Foreclosures.” In Handling Your First (or Next) HOA Assessment Lien Foreclosure for Condos and Subdivisions Course, 2014. Austin: State Bar of Texas, 2014.
Bonura, Thomas. “Misdirected Hostility: Are Criticisms of Texas Property Tax Lenders?” 53 S. Tex. L. Rev. 569 (2012).