PITTSBURGH — Embattled real estate company MV Realty has filed for Chapter 11 bankruptcy in the 33 states in which it operates, including Pennsylvania.
Channel 11 has been investigating the company for over a year, which eventually led to lawsuits filed by attorneys general in six states for fraudulent and deceptive business practices.
The company pays consumers as low as $300 for the exclusive right to sell their homes for 40 years. The catch: if you didn’t use them to sell your house, you would be hit with a big penalty -- 3% of the value of your home.
The question is, what does this mean for the hundreds of people in Pennsylvania who have MV Realty contracts?
First, Chapter 11 is reorganization, so the company isn’t going away -- they just want to present a plan to a judge on how they will pay their debts. That means things won’t really change immediately.
In total, 16 states have laws curbing the kind of contracts MV Realty writes.
PREVIOUS 11 INVESTIGATES COVERAGE:
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- FCC takes action against company after 11 News investigation
- Pennsylvania AG sues MV Realty for blindsiding homeowners with 40-year liens
- States introducing legislation to stop deals similar to those made by MV Realty
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