Controversial real estate company withdraws bankruptcy petition
The Florida-based real estate company, which operates in 33 states around the country and is facing lawsuits from attorneys general in nine states, withdrew its bankruptcy case. MV Realty, a controversial real estate company, has withdrawn its Chapter 11 bankruptcy petition. The company, which operates in 33 states and is facing lawsuits from attorneys general in nine states, voluntarily withdrew the case. Sarah Mancini, Co-Director of Advocacy for the National Consumer Law Center, said this move allows for attorneys in at least nine states to pursue relief for consumers. Since our investigation, Attorneys General in nine such states have filed suits against MV Realty for unfair and deceptive business practices. The state AG's office is demanding that MV Recloth pay restitution to all people who suffered losses and strike all mortgages recorded on real estate in PA.
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Pubblicato : 11 mesi fa di Amy Hudak in Finance
PITTSBURGH — 11 Investigates has learned a major development in our years-long reporting on MV Realty. The Florida-based real estate company, which operates in 33 states around the country and is facing lawsuits from attorneys general in nine states, withdrew its bankruptcy case.
Sarah Mancini is the Co-Director of Advocacy for the National Consumer Law Center. She says this clears the way for attorneys general in at least nine states to pursue relief for consumers. She says attorneys for MV Realty likely saw the writing on the wall that the Chapter 11 bankruptcy case was not going to go in their favor, so instead of footing the bill for a costly hearing at the end of June, they voluntarily withdrew the case.
11 Investigates first introduced you to Georgette Snowden in 2022. She said money was tight when MV Realty approached her and agreed to pay her $391 to list her Pittsburgh home with them when she chose to sell. She says what she didn’t know she was signing a contract with a 40-year lien.
“It was fraud what they did,” Snowden said. “I didn’t know there was a lien. I would’ve never agreed to that if I knew there was a lien.”
11 Investigates teamed up with our sister stations in eight states to investigate the realty company. Since our reporting, Attorneys General in nine states, including Pennsylvania, have filed suit against MV Realty for unfair and deceptive business practices.
Mancini says the news of the bankruptcy case being dismissed is a win for consumers.
“The biggest impact on MV customers for having the bankruptcy case dismissed is that those Attorneys General are no longer impeded in seeking any relief they can and potentially getting those liens canceled,” Mancini said.
“This is a positive development that allows us to pursue the company in our state court action. Also, our litigation against the company founder Amanda Zachman remains ongoing.”
In its lawsuit, the state AG’s office is demanding that MV Realty do the following:
• Pay restitution to all people who suffered losses
• Strike all mortgages recorded on real estate in PA
• Refrain from entering into the ‘Homeowner Benefit Agreement’ with PA consumers
• Pay civil penalties of $1,000 for each violation of consumer protection law
• Pay civil penalties of $3,000 for each violation involving a consumer aged 60 or older
We did reach out to MV Realty about withdrawing its bankruptcy case. We have not yet heard back.
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Temi: Real Estate, Bankruptcy