Ashley Moody Files Complaint Against Realty Company for Deceptive and Unfair Business Practices
TALLAHASSEE (FLV) – Attorney General Ashley Moody filed a complaint yesterday against Florida-based MV Realty for injunctive and monetary relief because of deceptive and unfair business practices that result in homeowners signing away home equity for a small upfront payment.
According to the complaint, the realty company offers a small payment to customers with the promise that there is no obligation to return the cash, and the homeowner will owe the company nothing unless and until the home is sold. What is not clearly disclosed is that the company records a lien on the home, so that if at any time within 40 years the home is foreclosed upon or transferred to heirs upon the homeowner’s death, or if homeowners simply wish to cancel the deal, the realty company attempts to take 3% of the home’s value, regardless of whether they ever provide any real estate listing services.
The liens often make it difficult, or sometimes impossible, for the homeowner to refinance or otherwise tap into home equity.
Additionally, the company reportedly uses abusive and deceptive telemarketing practices, including calling millions of people on the National Do-Not-Call Registry and leaving millions of unwanted, pre-recorded voicemails.
“For many Floridians, their home is their most important asset and the cornerstone of their financial stability,” said Moody, “For a company to prey on unsuspecting homeowners in a way that locks them into a 40-year obligation designed to siphon away equity from the property is disgraceful. Today, I filed legal action to end this deceitful practice and protect Florida homeowners from further harm.”
Moody’s action seeks to instruct enforcement of the company’s contracts with consumers, enjoin future deceptive and unfair practices, return the money the defendants wrongfully took from homeowners and impose civil penalties for defendants’ willful violations of the law.
