The target of an Action News Investigation in 2022 has agreed to a settlement with the Pennsylvania Attorney General's Office.
Florida-based MV Realty was accused of offering homeowners, many of whom are low-income, a few hundred bucks. In return, the company would get exclusive rights for the opportunity to sell the properties for a 3% commission.
But many homeowners claim they were unaware there was a 40-year life to the agreement, and mortgages were placed on their homes.
"I could've jumped out of the chair and did a little dance," said Latrelle Fuller to Action News Investigative Reporter Chad Pradelli upon learning of the settlement. She says she was unable to get a home equity loan on her paid-off house because of MV Realty's mortgage. Her neighbor, Carolyn Brown, had to pay $6,000 dollars to MV Realty to get a loan on her home. She, too, entered into an agreement with MV Realty several years ago.
Pennsylvania Attorney General Dave Sunday called MV Realty's actions reprehensible.
"So as a result of the settlement, all 1,300 mortgages that were entered into in Pennsylvania are going to be cancelled, " he said in an exclusive interview earlier this week. Rosetta Loper Grant, who is selling her Oxford Circle home, signed onto the agreement offered by MV Realty. But then in May, she started second-guessing her decision. He says the Action News Investigation led to his office taking action by his predecessor, now-Governor Josh Shapiro.
The investigative team dug through city property records to uncover the MV Realty mortgages. He says the company will pay $645,000 in restitution under the settlement so homeowners like Brown will get their money back. The owner of MV Realty, former reality TV personality Amanda Zachman, has not responded to requests for comment.
"I know what it's like to work unbelievably hard for what you have and to take it in such a misleading way from consumers, especially to Target low-income communities, is disgusting to me, " Sunday said.93 animals rescued from Lancaster County home: PSPCA
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