Attorney General Chris Carr has obtained $1 million in consumer restitution after a successful lawsuit against the real estate brokerage firm MV Realty for predatory practices that took advantage of Georgians.
How did MV Realty take advantage of Georgians? MV Realty promoted its deceptively branded “Homeowner Benefit Program” on websites, social media, and through telemarketing as a way to “get cash without borrowing” and promised consumers that they could keep the small cash payment in exchange for agreeing to use the company’s services in the future.
It was not made clear to consumers that they were locked into a 40-year agreement that cost them or their heirs at least 3 percent of their home’s value.
This was based on three conditions: whether it was sold without using MV Realty as their agent, transferred to another person, or went into foreclosure before the 40 years are up.
What AG Chris Carr had to say:
- “MV Realty took advantage of Georgia homeowners who were already struggling – scamming them out of their equity and putting their life savings at risk.”
- "It’s unconscionable, and it’s why we took action to put a stop to their predatory scheme once and for all. With this outcome, we’re returning those funds to the hundreds of Georgians who were impacted, and we’re sending a strong message that this type of illegal behavior won’t be tolerated in this state.”
Further Context: MV Realty enrolled more than 3,300 Georgians into a Homeowner Benefit Agreement (HBA) for which the company recorded a memorandum in the real property records.
This memorandum acted as a cloud or lien on the homeowner’s property to ensure collection of the 3 percent early termination fee and interfered with a consumer’s ability to sell or refinance their home or obtain a reverse mortgage.
As a result of Carr’s lawsuit, each of these memorandums has been terminated. More than 3,000 homeowners were tricked into signing these predatory contracts, and a third of them were aged 60 or older.
All of them have been identified and contacted by the Attorney General’s Consumer Protection Division, which will administer the restitution funds.
