An Action News investigation has ended with a settlement between MV Realty and the Pennsylvania Attorney General’s Office, bringing relief to homeowners who say they were trapped by contracts they did not fully understand. The agreement will cancel 1,300 mortgages tied to MV Realty in Pennsylvania and return money to affected homeowners, according to Attorney General Dave Sunday.
MV Realty, based in Florida, drew scrutiny after offering homeowners a few hundred dollars in exchange for exclusive rights to sell their properties for a 3% commission. Many of those homeowners were low-income, and some later said they did not realize the agreements could last 40 years or that mortgages would be placed on their homes.
How the agreements affected homeowners
The deals created problems for people who needed to refinance, take out loans, or transfer property to family members. Latrelle Fuller said the situation became especially frustrating after she learned that her paid-off house carried a mortgage tied to an agreement she signed for $500.
Fuller told Action News Investigative Reporter Chad Pradelli that she could not get a home equity loan because of the MV Realty mortgage. Her neighbor, Carolyn Brown, faced a similar issue and said she had to pay $6,000 to MV Realty to secure a loan on her home.
“They told me that I have to do this or they would not give me the loan,” Brown said. Her comments echoed complaints from other homeowners who said they felt pressured into paying fees or living under restrictions they had not expected.
Attorney general says the practice was reprehensible
Sunday said the settlement followed work sparked by the Action News investigation and the review of city property records that revealed the MV Realty mortgages. He said his office viewed the company’s actions as deeply unethical, especially because they affected vulnerable homeowners.
“So as a result of the settlement, all 1,300 mortgages that were entered into in Pennsylvania are going to be cancelled,” Sunday said in an exclusive interview earlier this week. He also said MV Realty will pay $645,000 in restitution, which should allow homeowners like Brown to recover money tied to the deals.
Sunday described the conduct as “reprehensible” and said it was especially troubling that the company targeted low-income communities. MV Realty’s owner, former reality TV personality Amanda Zachman, has not responded to requests for comment.
Homeowners say they are relieved
For some residents, the settlement represents the end of a long and confusing financial burden. Fuller reacted emotionally when she learned the news, telling Action News, “I could’ve jumped out of the chair and did a little dance.”
Her case was one of several that helped bring attention to the issue in Pennsylvania. Rosetta Loper Grant, who was selling her Oxford Circle home, also signed onto an MV Realty agreement but later began questioning the decision after more details became clear.
Anyone who believes they were affected by MV Realty and paid fees to sell or transfer a property can contact the Pennsylvania Attorney General’s Office online. Complaints can also be emailed or made by phone at 1-800-441-2555, as the office continues working through claims tied to the settlement.