Short answer

If a Texas property owned by your deceased parent sold at foreclosure and the sale produced surplus (excess) funds, you generally must identify the surplus, prove your right to it, and present appropriate paperwork to the party holding the money (usually the foreclosure trustee or servicer). If the estate has not been probated, you will likely need either a probate appointment (personal representative/administrator) or another court determination of heirship before the surplus can be paid to heirs. In limited situations, a small‑estate or affidavit procedure may allow recovery without formal probate.

Detailed answer — what to expect and the steps to take

Foreclosures in Texas are most often non‑judicial trustee sales under the power in a deed of trust. Chapter 51 of the Texas Property Code governs many aspects of non‑judicial foreclosure sales and related issues; see the text of Chapter 51 here: Texas Property Code, Ch. 51. That chapter explains the sale mechanics, notice requirements, and how the sale is conducted. It does not give a simple form for distributing surplus where the owner is deceased, so the practical steps below are used.

1) Confirm whether a surplus exists and who is holding it

• Obtain a copy of the trustee’s deed and the foreclosure sale paperwork from the county clerk where the property sits. The trustee’s deed will show the sale price. Compare the sale price to the total secured debt, foreclosure costs, and subordinate liens to estimate whether there was an excess (surplus) after paying lien holders.
• Contact the foreclosure trustee or the lender/servicer in writing. Ask whether any surplus funds remain, the amount, and what documentation they require to release funds. Ask for the accounting that shows the distribution of sale proceeds.

2) Identify the legal owner and the heirs

• If the deed(s) show your parent as the owner at the time of sale, the right to any surplus is generally a property right that belonged to the deceased owner or to their estate, not automatically to informal family members.
• If the property was owned jointly with rights of survivorship, the survivor may already own the property before the sale and possibly have a claim to surplus; check chain of title carefully.

3) If the estate was never probated, decide whether you must open probate or use a simpler procedure

• Most trustees, lenders, and title companies will require either: (a) letters testamentary / letters of administration issued by a probate court showing a personal representative with authority to collect estate assets, or (b) a court order directing distribution of the surplus to named heirs. Without that, many institutional holders will refuse to release funds.
• Texas provides certain simplified procedures for small estates and other limited collections (for example, the small‑estate affidavit for certain personal property or summary administration in narrow circumstances), which can permit collection without full probate. These procedures have strict eligibility rules and limits. If the asset in question is limited to the surplus funds and the estate fits statutory limits, a simplified route may be possible. For full probate rules and procedures, consult the Texas Estates Code and a probate attorney in your county.

4) Typical routes to recover surplus when no probate exists

• Open probate for the deceased parent. A personal representative (executor/administrator) has clear statutory authority to collect estate assets, including surplus from a foreclosure sale. Once appointed, present the trustee’s accounting and a certified copy of the letters to the holder of the funds.
• If the estate is small (and qualifies), use the statutory small‑estate collection process or affidavit procedure to obtain the funds without full formal probate. Eligibility and forms vary; many institutions remain cautious and may still ask for a court order or letters.
• File a civil action in the appropriate court asking the judge to determine rightful distribution of the surplus (often called a claim/quiet title or interpleader style action). In some counties a suit to determine heirs or a suit against the trustee/lender asking for an order releasing funds to identified heirs may be required.

5) Documentation you should gather

• Certified death certificate for your parent
• Copy of the deed showing ownership at time of foreclosure
• Trustee’s deed and foreclosure sale paperwork and accounting
• Any will or estate planning documents your parent left
• Proof of your relationship to the decedent (birth certificate, family tree, etc.)
• Photo ID for the person seeking funds and contact information for all potential heirs

6) Practical timeline and costs

• Contacting the trustee and getting an accounting: days to a few weeks.
• Filing a small‑estate collection or affidavit: typically a few weeks to a few months depending on clerk processing and whether third parties accept the affidavit.
• Opening probate: usually months. Simple independent administration may still take several months and incur court filing fees, possible attorney fees, and bond requirements unless waived.
• Filing a civil action to compel distribution or determine heirs: several months to over a year depending on court backlog and complexity.

7) Who can help you

• Probate or real estate litigation attorneys can advise whether you qualify for small‑estate procedures or must open full probate.
• A title company or the county clerk’s office can help you obtain copies of the foreclosure deed and sale records.
• Some attorneys will take a surplus‑recovery case on a contingency fee if the amount justifies it.

Helpful hints — quick checklist to move forward

• Start by getting a certified copy of the death certificate — many institutions require it.
• Request the foreclosure accounting and trustee’s deed in writing and keep copies of all communications.
• Check the county property records to confirm ownership at time of sale and whether any survivorship language exists in the deed.
• Ask the trustee exactly what paperwork they will accept to release surplus funds (letters of administration, court order, affidavit, etc.).
• If the surplus is small, ask whether a small‑estate procedure could apply — but verify statutory limits with a lawyer.
• Document all possible heirs and their contact info before filing anything in court; courts like clear lists and proof of kinship.
• Consider contacting a probate attorney early. The cost of legal guidance often saves time and prevents wasted filings.
• Beware of quick‑claim “surplus recovery” services that ask for upfront fees without explaining legal steps like probate or court orders.

Where to find the law and forms

Key statutory material on nonjudicial foreclosure procedures is in the Texas Property Code, Chapter 51: https://statutes.capitol.texas.gov/Docs/PR/htm/PR.51.htm. For probate rules and eligibility for simplified procedures, consult the Texas Estates Code and local county probate rules (county court at law or statutory probate court). Your county court clerk’s office can point you to local forms and filing fees.

Final practical advice

Don’t assume surplus funds will be automatically distributed to family members. Institutions typically require court‑issued authority when the owner is deceased. Start by obtaining the foreclosure accounting and asking the trustee what documentation they need. If the trustee requires probate letters or a court order, consult a probate attorney about opening a small or full estate administration or filing a court action to determine heirs. Acting promptly preserves your rights and simplifies locating other claimants or creditors.

Disclaimer: This article explains general Texas legal concepts and practical steps. It is not legal advice. For advice about your specific situation, consult a licensed Texas attorney who handles probate and foreclosure matters.