ATLANTA, GA – Attorney General Chris Carr has filed suit against MV Realty and certain affiliates over allegations that the companies used unlawful and deceptive means to mislead cash-strapped homeowners into signing a 40-year agreement for what is essentially a predatory financial product.

“It’s critically important that homeowners receive all of the information they’re due up front before signing financial agreements that could drastically impact their families for years to come,” said Carr. “We will continue to hold accountable any company that purposefully engages in deceptive tactics in an attempt to mislead or take advantage of hardworking Georgians.”

As alleged in the complaint, in Georgia, MV Realty widely and aggressively promoted its deceptively branded “Homeowner Benefit Program” on websites and social media and through a massive telemarketing operation that included over 550,000 calls to Georgia consumers, many of whom were on the FTC’s Do Not Call Registry. MV Realty presented the Homeowner Benefit Program as a way to “get cash without borrowing” and promised consumers that they could keep the small cash payment “no matter what” in exchange for simply agreeing to use the company’s services in the future. What is not made clear to consumers is that they are then locked into a 40-year agreement that will cost them or their heirs at least 3 percent of the value of the home if it is sold, transferred to another person, or goes into foreclosure before the 40 years are up. This cost applies whether or not the homeowner uses MV Realty as its agent when selling the house.

The complaint further alleges that, between June 13, 2020, and Nov. 18, 2022, MV Realty enrolled more than 3,300 Georgians – of whom over 1,000 were 60 years or older – into a contract known as a “Homeowner Benefit Agreement.” To secure performance and payment under this agreement, MV Realty recorded a “Memorandum of Homeowner Benefit Agreement” in the real property records.  The memorandum acts as cloud or lien on the homeowner’s property that is worth at least ten times the amount of the no-strings-attached payment consumers receive up-front. MV Realty often interferes with a consumer’s ability to refinance their home and refuses to remove the cloud from the title when a consumer wants to obtain a reverse mortgage, unless the consumer pays the greater of 3 percent of the current home value or the value of the home at the time the memorandum was executed.

In view of these alleged violations of the Georgia Fair Business Practices Act, Carr is seeking a civil penalties, restitution for consumers, a court order to stop these practices, and other equitable relief.

Find a copy of the complaint  here .

On Sep. 22, 2023, MV Realty filed for bankruptcy protection under Chapter 11. Consumers who believe they were treated unlawfully by MV Realty or its associates should visit this website for more information, including how to file a claim in the bankruptcy case.