Action News Investigation: Real estate company accused of deceptive practices

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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.

Data pulled from Philadelphia records suggests the company may be focusing on minority neighborhoods.

Kerry Smith is an attorney for Community Legal Services, which does pro bono work for low-income residents. She says a half dozen people have come to her seeking help after learning MV Realty recorded mortgages on their properties to secure their commission rights.Smith is critical of MV's contracts, citing the 40-year term, 3% termination fee of the home's values, and the forfeiting of customers' rights to sue while MV Realty still can.

Recent contracts we reviewed clearly state MV Realty will record mortgages to secure the exclusive listing rights and take what is generally a 3% percent sales commission. The lawsuit also takes issue with what it states is abusive telemarketing and advertising practices. MV Realty told Action News their practices are legal and ethical.Goldstein works for the nonprofit, Reinvestment Fund, which helps underserved communities.

The Pennsylvania Attorney General's Office is strongly encouraging people with complaints to report them to the office. It is clearly disclosed in 12-point bolded type in the HBA. When requested to facilitate a refinancing or home equity loan, MV has ALWAYS removed the filing if requested at no cost to the homeowner. Indeed, MV is in the process of amending all of its existing HBA's to make it an obligation of MV to do so in every case.

 

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