MV Realty Mortgage Scheme: What You Should Know

May 23, 2023

This post was updated to include a link to the recording from the first information session.

On December 14, 2022, the Pennsylvania Attorney General filed a lawsuit against MV Realty, accusing the company of engaging in deceptive business practices. Since 2020, hundreds of Philadelphia residents have signed so-called "Homeowner Benefits Agreements" with MV Realty. These agreements are very problematic, and many homeowners said the terms were not fully explained when they signed the documents.

The Philadelphia Department of Planning and Development, Office of Community Empowerment and Opportunity, and Community Legal Services are hosting information sessions for affected residents. You may register to attend one of the remaining sessions or watch the recording from the first session.

A: MV Realty's agreement and mortgage are complex and put many requirements on homeowners. The Pennsylvania Attorney General's lawsuit against MV Realty claims the company's practices are unlawful. The Attorneys General in Massachusetts and Florida have also sued the company alleging their practices are illegal.

Specifically, advocates in Pennsylvania believe that MV Realty misleads homeowners about the nature of the agreement and that the 40-year contract term exceeds the maximum term under Pennsylvania law, among other issues. MV Realty has disputed those claims. Ultimately, the courts will determine if the agreement and practices of MV Realty are legal.

You should carefully read any documents that you are asked to sign and seek out an attorney if you need help understanding any contracts.

A: There are several programs that may be able to assist residents.

To learn more about these programs, visit https://phdcphila.org/ and click on the word "Residents" in the blue band near the top of the page, below the PHDC logo.

A: MV Realty requires homeowners to sign a mortgage putting up their home as a guarantee for any money due under the agreement. The mortgage is not a transfer of ownership, so you still own your home. But the mortgage can make it difficult for you to refinance, get a home equity line of credit, or sell your home.

You can contact the Department of Records at 215-686-2290 or [email protected] to get a copy of the MV Realty mortgage.

A: Under the terms of the agreement, if you use MV Realty as your listing agent to sell your home, you will have to pay MV Realty whichever is higher:

If you try to cancel the deal or transfer the property to someone else, you will have to pay 3 percent of the value of the property. MV Realty will determine the value of your property.

A: The agreement includes language that may allow you to cancel the contract within 3 days of signing it.

In addition, under Pennsylvania law, you can cancel a contract within 3 days of signing it if:

You should consult with an attorney to determine if you have the right to cancel the agreement and what other options you may have.

A: If you believe that MV Realty engaged in unfair or deceptive practices, you should report your complaint to the Pennsylvania Office of the Attorney General and the federal Consumer Financial Protection Bureau:

You can call the Save Your Home Philly Hotline at 215-334-4663 to speak to someone about the basics of the agreement. If you have a low income, the hotline may refer you to a legal aid program for legal advice. If you are not eligible for free legal help, the Philadelphia Bar Association Lawyer Referral and Information Service can help you find an attorney by calling 215-238-6333 or visiting their website.