Attorney General Matthew J. Platkin and the Division of Consumer Affairs (“Division”) today announced a $2.8 million settlement with MV Realty that resolves the State’s lawsuit alleging the Florida-based company violated New Jersey’s consumer protection laws by tricking financially struggling homeowners into unconscionable agreements that placed liens on their homes and subjected them to draconian terms in exchange for nominal one-time cash payments. More than 1,200 New Jersey residents entered into these so-called “Homeowner Benefit Agreements” (“HBAs”), including 140 who paid early termination fees ranging from $575 to $42,000 to get out of them.
“During the COVID-19 pandemic, MV Realty targeted financially struggling homeowners in a deceptive scheme that locked up equity in their most valuable asset – their homes,” said Attorney General Platkin. “This settlement frees New Jerseyans from the unlawful liens MV Realty placed on their homes, provides monetary relief to those who suffered financially in this scheme, and holds MV Realty accountable for its deceptive practices.”