How to claim HOA foreclosure surplus fund

[Sheifta Anwar]

I am trying to help someone who lost their home on HOA foreclosure in Harris County, TX. The lien was $10K and the home got auctioned off for $40K. Does anyone know the process of how can I help them to receive the $30K surplus fund? Is it different from Tax Sale or Mortgage sale surplus fund claim process?

Thank you!

[Peyton Leal]

If you're looking to just help, start with the county clerks office. They should be able to aid the claimant in how the process works, it is pretty simple. Here is the link to start: https://statutes.capitol.texas.gov/Docs/TX/htm/TX.34.htm

If you're looking at this from a business venture, check out:
Sec. 34.03. DISPOSITION OF EXCESS PROCEEDS. subsection (i):
"(i) A fee charged by an attorney to obtain excess proceeds for an owner may not be greater than 25 percent of the amount obtained or $1,000, whichever is less. A person who is not an attorney may not charge a fee to obtain excess proceeds for an owner."

If you find a way to circumvent that statute I would be interested in how. I have alerted claimants to their funds, but I have never charged for that service. 

Texas tax code is backwards and I feel that it favors the county districts after the 3 year seasoning so they can stake their claim.