11 Investigates has discovered an important update in our ongoing reporting on MV Realty. The real estate company based in Florida, which operates in 33 states across the country, has decided to withdraw its bankruptcy case. The company is currently facing lawsuits from attorneys general in nine states.
Sarah Mancini works as the Co-Director of Advocacy for the National Consumer Law Center. According to her, this allows attorneys general in at least nine states to take action to help consumers. According to her, the lawyers for MV Realty probably realized that the Chapter 11 bankruptcy case was not going to end well for them. Instead of paying for an expensive hearing in late June, they chose to withdraw the case voluntarily.
In 2022, Georgette Snowden was first introduced to you by 11 Investigates. When MV Realty approached her, she said she didn’t have much money. They agreed to pay her $391 to list her Pittsburgh home with them when she decided to sell it. She says that she didn’t realize she was signing a contract that had a 40-year lien attached to it.
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“What they did was fraudulent,” Snowden said. “I didn’t realize there was a lien.” I wouldn’t have agreed to that if I had known there was a lien.
11 Investigates joined forces with our sister stations in eight states to investigate the real estate company. Since we reported it, Attorneys General in nine states, including Pennsylvania, have taken legal action against MV Realty for engaging in unfair and deceptive business practices.
Mancini believes that the dismissal of the bankruptcy case is good news for consumers. “The main consequence for MV customers if the bankruptcy case is dismissed is that the Attorneys General can now freely pursue any actions they want to seek relief and potentially have those liens canceled,” explained Mancini.
The Pennsylvania Attorney General’s Office says:
“This is a good thing that lets us take legal action against the company in our state court.” Furthermore, our legal action against the company’s founder, Amanda Zachman, is still in progress. The state Attorney General’s office is suing MV Realty and is asking them to do the following:
- Compensate all individuals who experienced financial losses
- Remove all mortgages that have been recorded on real estate in Pennsylvania.
- Do not agree to the ‘Homeowner Benefit Agreement’ with consumers in Pennsylvania.
- You must pay a fine of $1,000 for each time you break a consumer protection law.
- You must pay a fine of $3,000 for each time you break the rules that protect consumers who are 60 years old or older.
We contacted MV Realty to discuss withdrawing their bankruptcy case. We haven’t received a response yet.
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