- Michigan AG Dana Nessel filed a lawsuit against three MV Realty LLCs, alleging that they misled homeowners over claims that the companies operated an illegal and deceptive home loan and lien scheme through a cash payment program that imposed long-term financial obligations on properties. The lawsuit alleges that MV Realty presented itself as a real estate brokerage firm and marketed to consumers its “Homeowner Benefit Program” that claimed it would pay homeowners cash with no obligation to repay the amount or sell their homes. The program allegedly offered homeowners a few hundred dollars, typically $300-500, while advertising that the money did not need to be repaid. In exchange, the agreements gave MV Realty an exclusive right to represent homeowners in property sales for 40 years.
- Under the agreement, homeowners who sold their properties could owe MV Realty a commission of 3%-6% of the sale price or face substantial early termination fees. The company also allegedly recorded the agreements against property titles, creating liens that complicated homeowners’ ability to sell or refinance. The lawsuit also claims that the company lacked the required Michigan real estate broker’s license and that the interest rates associated with the agreements exceeded legal limits.
- AG Nessel alleges violations of state and federal consumer protection laws, along with laws governing interest rates and lending. The complaint alleges that the program functioned as a loan secured by homeowners’ properties rather than the no-repayment benefit described in its marketing. The AG is seeking to invalidate or limit the agreements and associated liens, prevent the company from collecting certain commissions and termination fees, obtain restitution and damages for affected consumers, and impose civil penalties.
- We have previously reported several legal actions against MV Realty, including lawsuits, permanent injunctions, and settlements from Minnesota, Florida, Colorado, New Jersey, and North Carolina.