Additional Information for MV Realty PBC, LLC

In July 2022, BBB conducted an investigation into MV Realty PBC, LLC.  The investigation determined:

BBB files contain a pattern of complaints from consumers that allege issues with contracts. Specifically, consumers allege the Homeowner's Advantage Program contract is unfair and, in some cases not fully explained. In addition, some consumers have alleged liens (or memorandums) have been placed against their properties.

On July 14, 2022, BBB sent correspondence to MV Realty PBC, LCC requesting their voluntary cooperation in providing steps it will implement to eliminate the pattern of customer complaints. 

On August 10, 2022, MV Realty responded to BBB with the following:

At the time that a consumer signs MV Realty’s Homeowner Benefit Agreement (HBA), its notaries will provide the client with a blank copy of the HBA as well as a document setting forth the following information:

1. The timelines and expectations for when the client will receive their money;
2. A reminder that the client has the right to rescind the HBA and an easy process to follow if they choose to do so;
3. A confirmation that the client has agreed to allow MV Realty to file a memorandum lien of the HBA on their property;   
4. A reminder that the client has agreed  to a 40 year time period to use MV as their exclusive real estate broker for the property and the penalty for violating the HBA; and
5. The availability of direct contact with a live person at MV’s Client Success team who can address any questions they have.

Once a MV Realty representative signs the HBA, MV will send the client a fully executed copy of the HBA in the manner they have requested. Clients can request another copy of the HBA at any time. Clients also have direct access to the real estate agent via their cell phone who facilitated the contract signing in addition to the Client Success Team. MV has also recently added resources so that it answers more of its calls live.

MV Realty has combined some of the ways it has recently improved its customer experience as well as some new ideas to ensure that it is making every effort to reduce BBB complaints. MV Realty looks forward to partnering with the BBB to better serve consumers.

As of November 29, 2022:

The Florida Attorney General's Office filed a complaint for injunctive and monetary relief against Florida-based MV Realty and its principals for deceptive, unfair and unconscionable business practices that result in homeowners signing away home equity for a paltry upfront payment. The defendants offer homeowners $300 to $5,000 as a cash loan alternative in exchange for an agreement to use the company as an exclusive listing broker. However, after accepting the payment, homeowners discover that MV Realty files a 40-year lien on the property that requires paying 3% of the value of the home to MV Realty, regardless of whether the company ever provides any real estate listing services.

According to the complaint, MV Realty offers a small payment to consumers with the promise that there is no obligation to return the cash, and the homeowner will owe MV Realty nothing unless and until the home is sold. However, what is not clearly disclosed is that the company records a lien on the home so that if at any time within 40 years the home is foreclosed upon or transferred to heirs upon the homeowner’s death, or if homeowners simply wish to cancel the deal, MV Realty attempts to take 3% of the home’s value.

Moreover, the liens often make it difficult or sometimes impossible for the homeowner to refinance or otherwise tap into home equity. Additionally, the company uses abusive and deceptive telemarketing practices, including calling millions of people on the National Do-Not-Call Registry and leaving millions of unwanted, pre-recorded voicemails.

The Attorney General's action seeks to enjoin enforcement of MV Realty’s contracts with consumers, enjoin future deceptive and unfair practices, return the money the defendants wrongfully took from homeowners and impose civil penalties for defendants’ willful violations of the law.

LINK: http://www.myfloridalegal.com/newsrel.nsf/newsreleases/E9E4A2F7281415CE85258909007259EC?Open&

As of February 15, 2023:

The Ohio Attorney General's Office is seeking preliminary and permanent injunctions against MV Realty of Ohio, the company’s founder and its principal broker to stop them from negotiating real estate contracts that violate Ohio law and from practicing real estate without proper licensing.

The Attorney General's Office filed the request in Franklin County Common Pleas Court on behalf of its client, the Ohio Department of Commerce’s Division of Real Estate and Professional Licensing.

The attorney general’s lawsuit alleges that MV Realty founder Amanda Zachman and broker Diana Remar confuse and mislead homeowners with the company’s “Homeowner Benefits Agreements,” contracts that omit crucial information and language required by state law.

Specifically, they deceive Ohioans by providing clients cash as a “loan alternative” in exchange for using MV Realty as their exclusive real-estate listing broker for a given period. 

During that time, if the homeowner lists the property for sale without using MV Realty as its broker or the home is foreclosed upon, or if the homeowner’s heirs try to sell the home or the homeowner simply wants to cancel the deal, the defendants seek to be paid 3% of the property value — with both the percentage and the property’s value determined by MV Realty, per the misleading agreement created by the defendants.

Whenever such an instance occurs, the defendants take out a lien on the homeowner’s property, issuing an additional memorandum asserting MV Realty’s exclusive right to list the house, thus binding the property owner to the terms of the agreement.

What MV Realty’s agreements leave out, The attorney general's lawsuit says, are these vital state-mandated details:

• The name of the agent to be used
• Required fair housing language
• Required anti-blockbusting language
• A clear statement for the expiration of the agreement
• A clear statement of representation

The lawsuit also maintains that Zachman, who lives in Delray Beach, Florida, is not licensed in Ohio as a real estate salesperson but is illegally acting as one through MV Realty and Remar, who is a licensed Ohio broker.

The Attorney General's Office is asking the court to put their unlicensed practice out of business.

Consumers who have been affected by a contract with MV Realty can file a complaint with the Division of Real Estate and Professional Licensing.

Consumers who suspect unfair practices should contact the Ohio Attorney General's Office at OhioProtects.org

UPDATE As of March 3, 2023

Massachusetts Attorney General Andrea Joy Campbell’s office has secured a preliminary injunction in an ongoing lawsuit against MV Realty, a company that the AG’s Office alleges deceptively presents itself as a real estate brokerage, while, in actuality, aggressively marketing a deceptive loan product to financially struggling homeowners in Massachusetts.

The preliminary injunction, granted by the Suffolk Superior Court on Monday, restricts MV Realty from engaging in unfair and deceptive marketing practices, prohibits the company from obtaining or recording additional mortgages during the pendency of the litigation and requires the company to release existing mortgages.

LINK: https://www.mass.gov/news/ags-office-secures-preliminary-injunction-against-mv-realty-blocking-the-company-from-stripping-equity-from-homeowners

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As of December 14, 2022

Attorney General Maura Healey announced today that her office has sued a Florida-based financial company, which presents itself as a real estate brokerage, for aggressively marketing a deceptive small dollar loan product to hundreds of financially struggling homeowners in Massachusetts.  

The AG’s complaint, filed in Suffolk Superior Court, alleges that MV of Massachusetts, LLC, a/k/a MV Realty, sells a product called a “Homeowner Benefit Agreement” (HBA) that offers small dollar cash payments in exchange for a 40-year exclusive right for MV Realty to act as the listing brokerage when the homeowner decides to sell. The complaint also alleges that MV Realty uses unfair and deceptive marketing and sales tactics to hide the true terms of the contract, which, effectively amounts to a loan, and uses illegal methods for securing its rights under the contracts, including mortgaging homeowners’ properties in violation of Massachusetts laws. The AG’s Office also filed a request for a temporary restraining order and preliminary injunction to ban MV Realty from offering these deceptive contracts to consumers in Massachusetts.  

Terms buried in the contract include: a clause that allows MV Realty to assign the right to be the homeowner’s broker to anybody it wants to, without restriction; a clause ensuring a minimum payment to MV Realty, even if it overestimated the value of the home; a clause that requires tenfold repayment of the advance if the owner loses the home to foreclosure; and a clause that says that if MV Realty does act as a broker it will not owe homeowners the duty of loyalty or duty of confidentiality real estate agents generally owe their clients. 

“MV Realty’s business model and contract terms are unconscionable, targeting elderly and financially vulnerable homeowners who are short on cash, only to leave them with agreements they don’t understand and can’t get out of,” said AG Healey. “We are suing to get homeowners out of these contracts, protect our residents from this scheme, and stop this predatory company from doing any more business here in Massachusetts.”   

According to the AG’s Office, MV Realty began doing business in Massachusetts in 2021 and has sold over 500 HBAs to Massachusetts homeowners across almost every county in the state. MV Realty markets its HBAs as a “loan alternative” and aggressively targets low-income and elderly consumers who are in immediate need of cash with payments ranging from $500 to $5,000 (averaging $1,150). MV Realty conceals in its marketing and sales processes material terms including its ability to foreclose on the home, that the company only acts as a “non-agent facilitator,” and that if the heirs won’t assume the agreement after a homeowner’s death, MV Realty can foreclose.  

Under the terms of the contract, MV Realty can also collect a payment of at least 10 times the amount advanced with virtually any title transfer or service provided to the homeowner – not just when the home is sold as presented to homeowners. For example, in exchange for $1,315 in cash to one consumer, MV Realty was guaranteed approximately $13,148 in the event of a sale—all secured by a mortgage on a home with an estimated value of $438,290. When a financial hardship required a fast sale of the home, the consumer paid this $13,290 “early termination fee,” even though MV Realty did not act as a broker. 

The AG’s complaint alleges that MV Realty targeted consumers searching for information on small loans or public benefits with advertisements that falsely implied that the HBAs were a public program, promotion, or giveaway. They also allegedly targeted vulnerable consumers using search terms like “government home improvement grant” and “help for seniors with home repairs.” Its advertising included phrases like “Remember, because it’s not a loan, there is NO repayment” and “you NEVER repay these funds.” 

Once MV Realty obtained a lead, the complaint alleges that salespeople would barrage homeowners with phone calls, texts, and emails to secure a deal. Salespeople for MV Realty took numerous steps to ensure homeowners did not read through or understand the HBA contracts, including not providing documents in advance for consumers to read, printing physical documents in size 8.5-point font, not leaving copies after consumers signed the contract, and sending mobile notaries who knew nothing about the product to rush homeowners to sign. These mortgage transactions typically close without an attorney present in consumers’ living rooms, on car hoods, or, in at least one case, at a local Dunkin Donuts.  

As a result of these practices, the complaint alleges that MV Realty customers are unaware of the core terms of the transaction and are unwittingly saddled with an encumbrance on their home, tying up what is most likely their most valuable asset, restricting their ability to refinance, and preventing them from selling without paying a tenfold penalty to MV Realty. 

The AG’s complaint alleges that MV Realty engaged in unfair and deceptive acts related to consumer finance and residential real estate, unlicensed practice of law, and systemic violations of Massachusetts laws related to mortgages and consumer loans, including laws prohibiting usury. The complaint seeks restitution for consumers, rescission of the contracts, release of the mortgages, and civil penalties.

LINK: https://www.mass.gov/news/ag-healey-sues-florida-company-for-scamming-financially-struggling-residents-into-mortgaging-their-homes-in-exchange-for-small-cash-payments

As of December 14, 2022

Attorney General Josh Shapiro announced a lawsuit against Florida-based MV Realty PBC, LLC and its founder, Amanda Zachman. The suit alleges that the defendants misled Pennsylvania consumers regarding the terms of the company’s so-called  Homeowner Benefit Program and obtained mortgages on consumers’ homes without their knowledge. The Homeowner Benefit Program currently offered by MV Realty scams consumers with a one-time upfront payment in exchange for the exclusive opportunity for MV to list the consumer’s home on the realty market if the consumer sells at any time in the next forty years. Consumers who try to withdraw from the program find themselves at risk for substantial penalties to be paid to MV Realty or they may be blindsided with a mortgage placed against their property.

MV Realty’s telephone sales pitch misleadingly suggests that the Homeowner Benefit Program has no risk to homeowners because they pay nothing to MV Realty unless they sell their homes.  When successful with its sales pitch, MV Realty then has consumers sign a Homeowner Benefit Agreement which contains terms that are wildly different from the simple deal MV Realty sells over the phone. The agreement contains terms that are far outside the norm of the real estate industry. Most shockingly, the Homeowner Benefit Agreement permits MV Realty to obtain a mortgage on a homeowner’s real estate to enforce the contract’s terms. MV Realty does not advise consumers of these key terms in its sales pitches; rather, it just hides these terms in the fine print. The lawsuit alleges these unfair and deceptive practices by MV Realty are in violation of the Unfair Trade Practices and Consumer Protection Law.

The Office of Attorney General heard from homeowners across the Commonwealth claiming they were ripped off by MV Realty after learning that the company had recorded mortgages on their real estate without their knowledge. The Office is aware of around 1000 mortgages that are tied to MV Realty and believe there may be more throughout the Commonwealth. These homeowners said that MV Realty misled them about the terms of the Homeowner Benefit Agreement and never told them that it would result in a mortgage being placed on their property. Homeowners have emphatically told the Office of Attorney General that they never would have signed MV Realty’s Homeowner Benefit Agreement had they known it involved a mortgage being recorded on their home.

The lawsuit asserts that defendants engaged in unfair and deceptive acts and practices in violation of the Unfair Trade Practices and Consumer Protection Law. The lawsuit requests the court order the defendants to:

• Pay restitution to all people who have suffered losses as a result of the defendants’ conduct;
• Strike all mortgages recorded on real estate in Pennsylvania;
• Refrain from entering into the Homeowner Benefit Agreement with Pennsylvania consumers; and
• Pay civil penalties of $1,000 for each violation of the Consumer Protection Law and $3,000 for each violation involving a consumer 60 or older.

Consumers with concerns about contracts they made with MV Realty are strongly encouraged to file a complaint with the Bureau of Consumer Protection online or contact BCP for more information at 1-800-441-2555 or [email protected].

As of June 6, 2023

Attorney General Matthew J. Platkin and Department of Banking and Insurance Commissioner Marlene Caride announced action being taken against MV Realty together with their principals Amanda J. Zachman f/k/a Amanda J. Zuckerman, David Manchester, David Reiner, and Antony Mitchell a/k/a Tony Mitchell (collectively with MV Realty, “Defendants”). The Office of the Attorney General and the New Jersey Division of Consumer Affairs have filed a complaint alleging MV Realty deceived customers and made misrepresentations regarding its “Homeowner Benefit Program” (“HBP”). More than 1,250 New Jersey homeowners have fallen victim to the company’s alleged scheme. The Department of Banking and Insurance has filed an order to show cause with the New Jersey Real Estate Commission alleging similar misconduct and taking action against the real estate licenses of the company and certain related individuals.

According to the complaint, filed in the Superior Court Chancery Division in Essex County, MV Realty and its principals marketed the HBP to consumers as a low-risk opportunity to obtain quick cash, between $300 and $5,000 in payment upfront, in exchange for the consumers giving MV Realty the right to serve as their real estate agents if they decide to sell their homes in the future. Defendants represented that their product was not a loan and told homeowners they had “no obligation” to repay MV Realty or to ever sell their home in the future. However, the HBP operates as a high-interest mortgage loan that gives MV Realty the right to list a property for 40 years, survives the homeowner’s death, and levies an exorbitant early termination fee against homeowners.

The complaint alleges that MV Realty, which is not registered as a telemarketer in New Jersey, sells the HBP by making unsolicited telephone calls to homeowners that are facing financial pressures and in need of additional cash.

MV Realty does not disclose the true nature of the deal or its predatory terms upfront. Among other things, it does not disclose that there will be a lien placed against the home, that there is a 40-year contract term, that the agreement is binding on the consumer’s heirs, or that the consumer will pay a severe early termination fee if the consumer lists the property for sale with another real estate agent, if the home is foreclosed upon, title is transferred to a family member, heirs try to sell the home, or if the consumer wishes to cancel the deal.

The complaint alleges that MV Realty’s practices are in violation of the Consumer Fraud Act, the regulations governing general advertising, and the telemarketing do not call regulations.

Through the complaint, the State is seeking for MV Realty to discharge all liens against homeowners and pay them restitution, repay unlawfully acquired profits, and pay civil penalties and attorneys’ fees and costs. The State is also seeking to permanently enjoin the Defendants from operating in the State of New Jersey.

The Department of Banking and Insurance has issued an Order to Show Cause to MV Realty and individuals involved in the company for alleged violations of the Real Estate License Act. The department found that this company engaged in deceptive, misleading, predatory, and dishonest business practices, as well as unlicensed activity. The department’s action requires respondents to show cause why their real estate licenses should not be suspended or revoked and/or why fines or other sanctions, including restitution, should not be imposed.

MV Realty has agreed to cease any effort to engage New Jersey consumers in a Homeowner Benefit Agreement pending the resolution of the Order to Show Cause proceeding. The department has issued a Consent Order solidifying this agreement, which was signed by a representative of the company and its principals.

LINK: https://www.njoag.gov/attorney-general-platkin-the-new-jersey-division-of-consumer-affairs-and-the-department-of-banking-and-insurance-take-action-against-mv-realty-for-misleading-consumers/

As of March 21, 2023

Attorney General Josh Stein filed a lawsuit against real estate brokerage firm MV Realty and the company’s leaders alleging that they violated North Carolina’s laws prohibiting unfair and deceptive practices, usurious lending, abusive telephone solicitation practices, and unfair debt collection practices by tricking homeowners into signing oppressive, 40-year real estate agreements. The Department of Justice has received more than 20 complaints from people about MV Realty’s unfair and allegedly unlawful practices.

MV Realty started operating in North Carolina in August 2020, and has since signed up more than 2,100 North Carolinians to its “Homeowner Benefit Program.” Nationally, MV Realty has signed up more than 32,000 homeowners. Through the program, MV Realty targets homeowners who are facing financial hardships and are in need of cash through online ads, robocalls, and texts. MV Realty claims it will pay a homeowner a small upfront cash payment with “no strings attached,” as long as the homeowner agrees to use MV Realty as their listing agent if they sell their home. But MV Realty doesn’t tell homeowners that if they accept this deal, they are locked into exclusive 40-year agreements that even survive their deaths.

MV Realty also places a lien on the homeowner’s property to ensure it can enforce its agreement, even though it claims in its advertising that it doesn’t place liens. These liens make is difficult or impossible for homeowners to sell their homes or tap into its equity. And if a homeowner wants to be released from the oppressive agreement, MV Realty charges them a penalty that is at least 10 times the upfront payment they received. MV Realty has even filed lawsuits against homeowners to prevent them from selling their homes and to collect its penalty.

MV Realty also misrepresents the level of service its real estate agents provide. In reality, MV Realty’s real estate agents act primarily as salespeople focused on convincing homeowners to sign up for MV Realty’s program. Once an MV Realty real estate agent has persuaded a homeowner to accept the small upfront payment, they ensure that the homeowner is rushed into signing an agreement without any real opportunity to read it. If a homeowner does ask an MV Realty real estate agent for help selling their home, these agents sometimes fail to do even basic tasks like putting up a “for sale” sign.

Attorney General Stein is seeking preliminary and permanent injunctions, restitution for consumers, and other monetary penalties. If you believe you or someone you know has been treated unlawfully by MV Realty, please file a consumer complaint with our office at www.ncdoj.gov/complaint or 1-877-5-NO-SCAM.

LINK: https://ncdoj.gov/attorney-general-josh-stein-sues-mv-realty/

As of January 30, 2024

Georgia Files Suit Against MV Realty Over Allegations of Unfair and Deceptive Practices

Attorney General Chris Carr has filed suit against MV Realty and certain affiliates over allegations that the companies used unlawful and deceptive means to mislead cash-strapped homeowners into signing a 40-year agreement for what is essentially a predatory financial product.

As alleged in the complaint, in Georgia, MV Realty widely and aggressively promoted its deceptively branded “Homeowner Benefit Program” on websites and social media and through a massive telemarketing operation that included over 550,000 calls to Georgia consumers, many of whom were on the FTC’s Do Not Call Registry. MV Realty presented the Homeowner Benefit Program as a way to “get cash without borrowing” and promised consumers that they could keep the small cash payment “no matter what” in exchange for simply agreeing to use the company’s services in the future. What is not made clear to consumers is that they are then locked into a 40-year agreement that will cost them or their heirs at least 3 percent of the value of the home if it is sold, transferred to another person, or goes into foreclosure before the 40 years are up. This cost applies whether or not the homeowner uses MV Realty as its agent when selling the house.

The complaint further alleges that, between June 13, 2020, and Nov. 18, 2022, MV Realty enrolled more than 3,300 Georgians – of whom over 1,000 were 60 years or older – into a contract known as a “Homeowner Benefit Agreement.” To secure performance and payment under this agreement, MV Realty recorded a “Memorandum of Homeowner Benefit Agreement” in the real property records.  The memorandum acts as cloud or lien on the homeowner’s property that is worth at least ten times the amount of the no-strings-attached payment consumers receive up-front. MV Realty often interferes with a consumer’s ability to refinance their home and refuses to remove the cloud from the title when a consumer wants to obtain a reverse mortgage, unless the consumer pays the greater of 3 percent of the current home value or the value of the home at the time the memorandum was executed.

In view of these alleged violations of the Georgia Fair Business Practices Act, Carr is seeking a civil penalties, restitution for consumers, a court order to stop these practices, and other equitable relief.

Find a copy of the complaint at: file:///C:/Users/msimmons/Downloads/01.30.24%20Complaint%20for%20Injunctive%20Relief_1.pdf

On Sep. 22, 2023, MV Realty filed for bankruptcy protection under Chapter 11.Consumers who believe they were treated unlawfully by MV Realty or its associates should visit https://dm.epiq11.com/case/mvrealtyholdings/info for more information, including how to file a claim in the bankruptcy case.

LINK: https://law.georgia.gov/press-releases/2024-01-31/carr-georgia-files-suit-against-mv-realty-over-allegations-unfair-and