HARRISBURG, PA — More than 1,300 Pennsylvania homeowners will have mortgage liens removed from their properties under a settlement with MV Realty PBC, LLC, resolving allegations that the company used deceptive practices tied to long-term real estate agreements.
What This Means for You
- Over 1,300 mortgage liens tied to MV Realty agreements will be eliminated
- Eligible consumers may receive restitution for early termination fees
- The company is barred from operating in Pennsylvania’s residential real estate market
Attorney General Dave Sunday announced the agreement, which also cancels all existing contracts between MV Realty and Pennsylvania homeowners and requires the company to pay $645,595 in restitution.
The settlement resolves a lawsuit filed in 2022 that alleged the Florida-based company misled consumers about its “Homeowner Benefit Program” and placed mortgage liens — legal claims against a property used to secure a debt — 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,” Sunday said. “This settlement provides impactful relief by eliminating those mortgages and protecting homeowners’ most valuable assets.”
How the Program Worked
According to the lawsuit, MV Realty offered homeowners a one-time upfront payment in exchange for exclusive rights to list their home for sale for up to 40 years.
Homeowners who tried to exit the agreements faced termination fees equal to 3 percent of their home’s value. Many consumers reported they did not realize the agreements would result in a mortgage lien being placed on their property.
Terms of the Settlement
The settlement, filed as a Consent Petition for Final Judgment — a court agreement that resolves a case without a trial — requires MV Realty to void all existing Homeowner Benefit Agreements in Pennsylvania.
Within 30 days of the agreement taking effect, the company must file documents to remove all associated mortgages from public records.
The agreement also requires MV Realty to pay $645,595 in partial restitution to consumers and $7,000 in litigation costs, with payments scheduled through March 1, 2027.
In addition, MV Realty and its officers are permanently prohibited from engaging in residential real estate business in Pennsylvania.
Civil penalties totaling $1,663,000 against the company and $50,000 against an individual defendant, Amanda Zachman, will be suspended as long as the company complies with the settlement terms.
What Homeowners Should Do
Consumers who entered into agreements with MV Realty do not need to take action to have mortgage liens removed from their properties.
However, homeowners who paid early termination fees are encouraged to file a complaint with the Attorney General’s Bureau of Consumer Protection within 60 days to be considered for restitution.
Complaints can be submitted online, by phone at 1-800-441-2555, or by email at consumers@attorneygeneral.gov.
Next Steps
The settlement has been filed in the Philadelphia Court of Common Pleas and is pending approval by the court.
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