HARRISBURG — Attorney General Dave Sunday announced a settlement resolving ongoing litigation against Florida-based MV Realty PBC, LLC (doing business as MV Realty of Pennsylvania, LLC) and Amanda Zachman.
Under the agreement, MV Realty agreed to terminate more than 1,300 mortgages it recorded on properties across Pennsylvania through its “Homeowner Benefit Program,” cancel all existing contracts with Pennsylvania homeowners, and pay $645,595 in restitution to consumers who paid early termination fees.
The Office of Attorney General filed a lawsuit in 2022, alleging MV Realty misled consumers about the terms of its program and placed mortgage liens on homes without homeowners’ knowledge, in violation of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law.
“Pennsylvania homeowners who fell victim to MV Realty’s deceptive sales practices were trapped by the mortgages placed on their homes,” Attorney General Sunday said. “This settlement provides impactful relief by eliminating those mortgages and protecting homeowners’ most valuable assets.”
According to the lawsuit, MV Realty offered homeowners a one-time upfront payment in exchange for exclusive rights to list their home for sale over a 40-year period. Consumers who attempted to exit the agreement were required to pay steep termination fees – equivalent to 3 percent of the homes’ value. Many homeowners reported they were unaware the agreement would result in a mortgage lien on their property.
The settlement, in the form of a Consent Petition for Final Judgement, requires the following:
- All existing Homeowner Benefit Agreements MV Realty signed with Pennsylvania homeowners shall be null and void. Within 30 days of the effective date of the Consent Petition, MV Realty shall submit for recording in public records satisfactions of all mortgages recorded in Pennsylvania.
- MV Realty shall pay partial consumer restitution of $645,595 and litigation costs of $7,000. The company will make payments in installments to be completed by March 1, 2027.
- MV Realty and its officers shall be permanently prohibited from engaging in any business involving the purchase or sale of residential real estate in Pennsylvania.
- Civil penalties against MV Realty shall be assessed at $1,663,000 and against Zachman at $50,000, which shall be suspended so long as they comply with the terms of the Consent Petition.
Pennsylvania consumers who entered into Homeowner Benefit Agreements with MV Realty do not need to take action in order to obtain a termination of the mortgages on their homes. However, consumers who paid an early termination fee to MV Realty are strongly encouraged to file a complaint with the Bureau of Consumer Protection within 60 days to qualify for potential restitution, if they have not already done so. Consumers can file complaints online, by phone at 1-800-441-2555, or by emailing co*******@*************al.gov.
The Consent Petition was filed in the Philadelphia Court of Common Pleas and is pending approval of the Court.
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