New Texas Excess Proceeds law introduced - What is your take on this ?

[Soji Oyenuga]

New Texas Excess Proceeds law introduced - What is your take on this ?

How do you think this will affect previous owners and investors that their primary investing strategy is helping previous owner collect the excess proceeds or buy the property before tax sale and allow it to go to tax sale with hope of collecting the excess proceed?

http://www.legis.state.tx.us/tlodocs/84R/billtext/...

84R12111 CBH-F

A BILL TO BE ENTITLED

AN ACT

relating to notice of excess proceeds following an ad valorem tax

sale.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 34.03(a), Tax Code, is amended to read as

follows:

(a) The clerk of the court shall:

(1) if the amount of excess proceeds is more than $25,

before the 31st day after the date the excess proceeds are received

by the clerk, send by certified mail, return receipt requested, a

written notice to the former owner of the property, at the former

owner's last known address according to the records of the court or

any other source reasonably available to the court, that:

(A) states the amount of the excess proceeds;

(B) informs the former owner of that owner's

rights to claim the excess proceeds under Section 34.04; and

(C) includes a copy or the complete text of this

section and Section 34.04; [and]

(2) regardless of the amount, keep the excess proceeds

paid into court as provided by Section 34.02(d) [34.02(c)] for a

period of two years after the date of the sale unless otherwise

ordered by the court; and

(3)regardless of the amount, send to the attorney

general notice of the deposit and amount of excess proceeds if the

attorney general or a state agency represented by the attorney

general is named as an in rem defendant in the underlying suit for

seizure of the property or foreclosure of a tax lien on the

property.

SECTION 2. The change in law made by this Act applies to the

disposition of excess proceeds of a property tax foreclosure sale

paid into court regardless of the date on which the foreclosure sale

occurred or the date on which the proceeds were paid into the court.

If on the effective date of this Act the clerk of a court is

retaining excess proceeds and Section 34.03(a)(3), Tax Code, as

added by this Act, applies, the clerk shall mail the notice required

by that subdivision as soon as practicable after the effective date

of this Act. The clerk may not distribute those proceeds as provided

by Section 34.03(b), Tax Code, before the second anniversary of the

date the notice is mailed. A claim for the proceeds made on or

before that second anniversary is considered to have been made

within the period provided by Section 34.03(b), Tax Code.

SECTION 3. This Act takes effect September 1, 2015.