How To Lose Your Excess Proceeds Recovery Rights by Signing A “Disclaimer of Interest” Form
As a defendant or a heir to a defendant in a delinquent property tax lawsuit in Texas, you may feel overwhelmed and anxious about the potential consequences of the case. Unfortunately, some taxing units and their attorneys may use fear tactics and manipulation to induce you into signing a disclaimer of interest in the property or excess proceeds after a tax sale. It’s important to know that signing such a disclaimer may not be in your best interest, and you should not fall for these tactics.
What is a Disclaimer of Interest?
A disclaimer of interest is a legal document that relinquishes any claim or interest in a property or in your rights to excess proceeds generated from a property tax sale . In the context of a delinquent property tax lawsuit, the taxing unit’s attorney may ask you to sign a disclaimer of interest in exchange for a promise that the taxing unit will not pursue any further legal action against you.
Why You Should Not Sign a Disclaimer of Interest
While signing a disclaimer of interest may seem like an easy way to resolve the delinquent property tax lawsuit, it’s important to know that doing so may have serious consequences. Here are some reasons why you should not sign a disclaimer of interest:
You May Be Giving Up Your Rights: By signing a disclaimer of interest, you are essentially giving up your rights to the property or excess proceeds. This means that you will not be entitled to any portion of the excess proceeds, even if you have a legitimate claim to them.
You May Be Settling for Less Than You Deserve: If you have a legitimate claim to the property or excess proceeds, signing a disclaimer of interest means that you may be settling for less than you deserve. You may be entitled to a portion of the excess proceeds or have a claim to the property that you are giving up by signing the disclaimer.
It May Not End the Legal Action: Even if you sign a disclaimer of interest, the taxing unit may still pursue legal action against you. They may continue to pursue a deficiency judgment, which is a court order that requires you to pay the difference between the amount owed and the amount received at the tax sale. Signing a disclaimer of interest also will not prevent other existing third-party creditors such as the IRS, Attorney General, Small Business Administration or other lienholders from pursuing their claims or waiving their rights against you, the property or any potential excess proceeds created by a property tax sale in the future.
You May Be Manipulated: The taxing unit’s attorney may use fear tactics and manipulation to induce you into signing a disclaimer of interest created by them. They may make you believe that signing the disclaimer is the only way to stop receiving lawsuit documents or to resolve the delinquent property tax lawsuit, even if it’s not in your best interest.
Remember, signing a disclaimer of interest may not be in your best interest, and you may be entitled to a portion of the excess proceeds or have a claim to the property.
What to Do Instead
If you are facing a delinquent property tax lawsuit in Texas, it’s important to seek the assistance of an experienced property tax attorney who can help protect your rights and guide you through the process. An experienced property tax attorney can help you evaluate your options, help you avoid going to court and determine the best course of action based on you and your individual or family heirship circumstances.
In Conclusion
Don’t fall for fear tactics by the taxing unit’s attorneys in a delinquent property tax lawsuit. Instead, seek the assistance of an experienced attorney who can help protect your rights and guide you through the process. At the Law Office of Victor D. Walker, P.C., we can assist you with every step of the lawsuit process, including review and consultation of disclaimer of interest forms, property tax sale inquiries and excess proceeds recovery representation. Our experienced attorneys can help you file a claim, provide the necessary documentation and research, defend your claim against disclaimer of interest claims and objections by taxing unit attorneys in court. For a free telephone consultation with an attorney, call the Law Office of Victor D. Walker, P.C, at 713-724-5300.,