As property values remain high across Florida, foreclosure surplus cases are becoming increasingly common. With more equity available in these sales, a growing number of individuals and companies are getting involved in the surplus recovery process — oftentimes improperly and unethically. One common issue that arises in these situations is tortious interference.
What Is Tortious Interference?
Tortious interference occurs when a third party intentionally and improperly disrupts a valid contractual or business relationship between two other parties, causing harm or financial loss. Simply put, it happens when someone purposefully and wrongfully inserts themselves into an existing agreement or relationship for their own benefit — to the detriment of one or both of the parties.
This concept is particularly important to understand in the context of Florida Foreclosure Surplus Recovery Funds.
(If you’re unfamiliar with what surplus funds are or whether you might be eligible to receive them, be sure to check out my earlier blogs: “Florida Foreclosure Sale Surplus Funds – What Are Surplus Funds Exactly and Are You Eligible to Receive Them?” and “Should You Hire a Lawyer to Help with Surplus Foreclosure Funds in Florida?”)
How Tortious Interference Arises in Surplus Recovery Cases
Let’s look at a common example:
Imagine a homeowner whose property is in foreclosure. The homeowner retains a law firm to represent them throughout the foreclosure litigation and, if possible, recover any surplus funds remaining after the foreclosure sale. However, before the attorney can complete this process, a surplus recovery company contacts the homeowner directly.
These companies often promise to “help recover your money quickly” — but at a steep price. The homeowner, unaware of the legal consequences, signs an agreement assigning their rights to the surplus company in exchange for only a fraction of the funds they are rightfully owed and entitled to (sometimes as much as 50%).
In this situation, the surplus recovery company has:
- Knowingly interfered with an existing attorney-client relationship,
- Induced the client to breach that relationship by assigning away their rights, and
- Caused financial harm by taking a significant portion of the funds that should rightfully belong to the homeowner.
This conduct may constitute tortious interference.
Why This Matters
When a surplus recovery company intervenes in a case where an attorney has already been retained, it not only disrupts the legal process but also puts the client at serious financial risk. These companies are not attorneys, nor are they bound or governed by the Florida Bar Ethics.
Unlike licensed attorneys, surplus recovery agents are free to directly solicit business from distressed homeowners — a practice strictly prohibited for lawyers. Unfortunately, this has led, and will continue to lead, to countless Florida homeowners unknowingly signing away their rights and losing a substantial portion, if not all, of their rightfully entitled surplus funds.
Protect Yourself from Improper Interference
If you are a former property owner or the heir of someone who lost property to foreclosure, and you believe you are entitled to surplus funds, it is crucial that you do not sign any agreements with surplus recovery companies. Doing so could mean giving up control of your claim and your money.
Instead, speak directly with a Florida foreclosure surplus attorney who can legally and ethically represent your interests. An attorney can help you recover your full entitlement — not just a percentage — and protect you from the kind of deceptive practices that may amount to tortious interference.
Take the Next Step in Defending your Surplus Rights
Tortious interference is not just an abstract legal concept — it’s a real problem affecting Florida homeowners every day. Don’t let unregulated surplus recovery companies take advantage of you or undermine your relationship with your attorney.
If you are in the process of foreclosure, with hopes of pursuing surplus funds, or if you need help recovering surplus funds from a foreclosure sale, contact Haynes Law Group for a free consultation. We handle surplus recovery cases in every county of the State of Florida and don’t get paid unless you do.
Recover your foreclosure surplus funds now. Call us at (888) 252-8754 for a consultation.