Settlement Requires MV Realty to Terminate Its Pa. Mortgages

Pennsylvania reached a settlement with Florida-based MV Realty and Amanda Zachman last week.  

Attorney General Dave Sunday announced that under the agreement, MV Realty agreed to terminate more than 1,300 mortgages it recorded on properties across Pennsylvania through its “Homeowner Benefit Program,” cancel all existing contracts with Pennsylvania homeowners, and pay $645,595 in restitution to consumers who paid early termination fees. 

The lawsuit filed by the Attorney General’s Office in 2022 alleged that MV Realty misled consumers about the terms of its program and placed mortgage liens 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,” Attorney General Sunday said. “This settlement provides impactful relief by eliminating those mortgages and protecting homeowners’ most valuable assets.” 

PAR President David Dean said, “PAR is pleased that the Pennsylvania Attorney General’s office is working to protect housing consumers from unfair real estate practices throughout the commonwealth.” 

For real estate agents in Pennsylvania who may notice something in a title with MV Realty should know that this agreement is no longer valid. 

Pennsylvania consumers who entered into Homeowner Benefit Agreements with MV Realty do not need to take action in order to obtain a termination of the mortgages on their homes, but PAR Chief Legal Officer Hank Lerner notes that property owners who have signed up for their county’s deed monitoring service should likely be notified when the mortgage lien is satisfied, as required by the settlement. 

However, consumers who paid an early termination fee to MV Realty are strongly encouraged to file a complaint with the Bureau of Consumer Protection within 60 days to qualify for potential restitution, if they have not already done so. Consumers can file complaints online, by phone at 800-441-2555, or by emailing [email protected].  

Lerner added, “Agents who worked with sellers that paid some sort of termination fee may want to reach out to those past clients to let them know about the settlement, and that they may be entitled to recover some or all of that payment.” 

The full list of settlement terms includes the following:  

• All existing Homeowner Benefit Agreements MV Realty signed with Pennsylvania homeowners shall be null and void. Within 30 days of the effective date of the Consent Petition, MV Realty shall submit for recording in public records satisfactions of all mortgages recorded in Pennsylvania. 

• MV Realty shall pay partial consumer restitution of $645,595 and litigation costs of $7,000. The company will make payments in installments to be completed by March 1, 2027. 

• MV Realty and its officers shall be permanently prohibited from engaging in any business involving the purchase or sale of residential real estate in Pennsylvania. 

• Civil penalties against MV Realty shall be assessed at $1,663,000 and against Zachman at $50,000, which shall be suspended so long as they comply with the terms of the Consent Petition.  

The consent petition was filed in the Philadelphia Court of Common Pleas and is pending the court’s approval.