The Pennsylvania Attorney General’s Office has settled litigation against a realty company accused of misleading customers with a “free money” trap.
PREVIOUS COVERAGE >>> Pennsylvania Attorney General’s Office taking ‘predatory’ realty company to trial
Channel 11 has reported on Florida-based MV Realty for years. The company offered to pay homeowners for exclusive rights to sell their homes for 40 years. But they didn’t tell homeowners that a mortgage lien would be placed on their property to enforce the contract.
11 Investigates worked with our sister stations around the country to expose their deceptive business practices and pass new laws to protect homeowners.
PREVIOUS COVERAGE >>> UPDATE on ‘Free Money’ Trap that left PA homeowners with 40-year Liens
The AG’s office sued MV Realty in 2022, and on Thursday, officials announced that a settlement had been reached.
“Pennsylvania homeowners who fell victim to MV Realty’s deceptive sales practices were trapped by the mortgages placed on their homes,” Attorney General Dave Sunday said. “This settlement provides impactful relief by eliminating those mortgages and protecting homeowners’ most valuable assets.”
PREVIOUS COVERAGE >>> MV Realty facing Congressional scrutiny following Channel 11 investigation
As part of the agreement, MV Realty and its officers can’t do any residential real estate business in Pennsylvania.
The 1,300 mortgages recorded with MV Realty will be terminated, and all current contracts will be canceled.
MV Realty must also pay $645,595 in restitution to customers, in addition to more than $1.66 million in civil penalties.
PREVIOUS COVERAGE >>> States introducing legislation to stop deals similar to those made by MV Realty
Since 11 Investigates began reporting, 32 states have passed laws to make agreements like this illegal.
In total, 12 attorneys general have sued MV Realty. Other states that have reached settlements with the company include Florida, Georgia and Massachusetts.
PREVIOUS COVERAGE >>> 11 Investigates UPDATE: Florida AG sues MV Realty for blindsiding homeowners with 40-year liens
The Pennsylvania AG’s office says that, if you paid an early termination fee to MV Realty, you can file a complaint within 60 days to qualify for potential restitution. You can do so online, by phone at 1-800-441-2555 or by emailing consumers@attorneygeneral.gov.
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