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MV Realty, a Delray Beach-based real estate company, has filed for bankruptcy protection in 33 states.
MV Realty, a Delray Beach-based real estate company, has filed for bankruptcy protection in 33 states. MV Realty, a Delray Beach-based real estate company, has filed for bankruptcy protection in 33 states. The company's decision followed lawsuits by six states over allegations of deceptive and unfair practices, as labeled by the Florida Attorney General. The company has faced allegations of engaging in deceptive business practices. Homeowners are charged a 3% fee if they choose to use another real estate company, if their home is facing foreclosure, or if they wish to cancel the deal. This 3% fee must be paid even if the homeowner passes away and leaves the property to a beneficiary.
MV Realty has initiated bankruptcy protection under Chapter 11 of the U. Bankruptcy Code as a means of reorganizing debt for the benefit of creditors and potentially continuing operations. The company has defended its business model as innovative.
However, multiple states have filed lawsuits against the company claiming its business practices are deceptive. In December 2022, a homeowner in Philadelphia testified to receiving a notice from the Department of Records, which recorded a lien on his home, causing shock.
MV Realty has not responded to inquiries regarding the bankruptcy. The filing for bankruptcy follows numerous legal issues faced by the company for several months. It has been sued by various states.