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Property redemption differences between HOA foreclosure and tax sale.

What is one major difference between real estate redemption laws after a property owners association (HOA) foreclosure sale and a Texas tax foreclosure sale? The HOA sale is governed by the Texas Property Code and the other is covered by the Texas Tax Code.

A property owner wanting to redeem property after a HOA sale must adhere to the requirements set out by §209.011 of the Texas Property Code. Specifically, the owner must make all the payments set forth by §209.011(e).

Must the owner requests an itemization of amounts owed from the foreclosure sale purchaser? The Texas Property Code does not identify that requirement nor does it state that the purchaser must respond to the request. The owner should make the request regardless. The amounts that need to be paid pursuant to §209.011(e) could possibly be obtained by public record and directly from the property owners association. If the owner cannot obtain an amount owed from the purchaser, the owner should come up with the best high estimate and make the required payments as soon as possible.

Unlike the redemption laws associated with a Tax foreclosure and Texas Tax Code Section §34.21, the Texas Property Code redemption requirements are simpler. The tax code required the previous owner of the property to pay the purchaser for amounts spent on the property. The tax code has a provision that states that "the owner of the property who is entitled to redeem the property under this section may request that the purchaser of the property...provide that owner a written itemization of all amounts spent on the property." See, Texas Tax Code §34.21(i). Under the tax code, the purchaser would have to provide an itemization of costs within 10 days o receipt of the request. The Texas Property Code §209.011(e) does not have a similar section.

Sometimes people loss property at a foreclosure sale because of unforeseen circumstances like a personal injury or loss of a job. An experienced real estate lawyer can help guide you in the redemption process.

  Article By Richard Weaver

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