Attorney General Josh Shapiro files lawsuit against Florida-based realty company
HARRISBURG (KDKA) - Pennsylvania Attorney General Josh Shapiro announced a lawsuit against a Florida-based real estate brokerage company and its founder for misleading its customers.
According to AG Shapiro and the lawsuit, MV Realty and its owner Amanda Zachman misled Pennsylvania consumers with its "Homeowner Benefit Program."
The company obtained mortgages on consumers' homes without their knowledge and scammed consumers with a one-time upfront payment in exchange for an opportunity where MV Realty would list the consumer's homes on the market should they sell them any time over the next 40 years.
Then, when those consumers tried to withdraw from the program, they found themselves at risk of penalties to be paid to MV Realty or having a lien placed on their property.
"Pennsylvania homeowners are falling victim to MV Realty's calculated deception in hiding the terms of the Homeowner Benefit Program," said Attorney General Shapiro. "MV Realty is a scam that exploits Pennsylvanians in vulnerable financial situations, and my office isn't buying it. My office will protect homeowners' most important asset - the value of their real estate."
The company's telephone sales pitch told consumers that the program came with no risk because the consumer paid nothing to MV Realty unless the home was sold. Consumers then signed an agreement that contained terms that were vastly different from what they were told over the phone.
Most misleadingly, the contract consumers would sign gave MV Realty permission to obtain a mortgage on the consumers' homes in order to enforce the terms of the contract.
"MV Realty did not represent themselves fairly in their dealings with my wife and me," said Thomas Halapin, an MV Realty victim just outside of Pittsburgh.
AG Shapiro's office is aware of around 1,000 mortgages that are tied to MV Realty and believes there are more throughout Pennsylvania.
The lawsuit alleges that MV Realty are in violation of the Unfair Trade Practices and Consumer Protection Law.