Home News Your home can make you some quick cash, but there’s a catch: A 40 year contract with MV Realty | ABC11 Troubleshooter

Your home can make you some quick cash, but there’s a catch: A 40 year contract with MV Realty | ABC11 Troubleshooter

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Money is tight for many homeowners as inflation hits consumers hard. One program offers cash in exchange for his 40-year listing contract at home. This is called the Homeowner Benefits Program and it is a program that gives him $300 to $5000 in cash without taking out a loan. It caught the attention of Maria Calder. “I thought she would get $800 now,” she says. MV Realty offered her her $800. In exchange for that cash, she had to sign a 40-year contract on her home listing if she wanted to sell her home.

Calder said: he should be worried about it. ’ But she had to worry about it. Just months after signing her contract with MV Realty, she says money got tighter. Calder said she had to sell her Garner home where she lived for 23 years. She listed with an agent, Terrance Boykin, right near her home and got her contract.

“My transaction coordinator did some research and found this document attached to the deed of the house,” Boykin said.

This document, which MV Realty calls a Memorandum of Understanding, accompanies the deed of the home under contract, even if the homeowner did not sell the home using MV Realty. What did this mean for Calder?

For Calder, at closing, she said she owed MV Realty more than $6,000. “They didn’t do anything. They just got $800.00 and that was it,” adds Calder. Remember, $800.00 is what MV Realty paid her in exchange for her 40-year listing contract. “No, even if I knew I had to pay $6,000, it wasn’t worth it at all. It’s horrible to have to be bound by an agreement like that,” Calder added. When shooter Diane Wilson asked Calder why she didn’t contact MV Realty and put her house up for sale, she replied: She was looking for them so she could contact them, but I don’t know where they were. ”

The MV Realty contract caught the attention of the NC Real Estate Commission. “In my opinion, we are at a stage where we are questioning whether this is some kind of predatory financing,” said Janet Torren, general counsel for the North Carolina Real Estate Commission.

Thoren said he is investigating MV Realty and its housing benefit program for its customers. “I don’t think they fully understand the terms of the deal and what it means. At the time, most of these people were desperate and in need of some cash.” Upon signing Realty’s paperwork, Thoren said MV Realty would act as a lien on the property.

She said, “It’s covered by a lien by the final defense and title insurance company, so the lien must be satisfied before the property can be sold.” lien.

“They expect the people who signed the contract to come back down the road. They somehow expect the heirs or signs of these properties to come back to them.” “It’s not the person who signed the contract. Even the person who signed it doesn’t seem to know what they signed,” Toren added.

Looking at Wake and Durham county property records alone, MV Realty has or still has several memoranda of understanding on client properties, more than 200 in Wake County and more than 90 in Durham. If homeowners are offered an upfront payment in lieu of signing a contract, Toren says it’s important to understand the terms of what they’re signing. “If you’re getting paid for free,” she says, “if you think you’re getting paid for free, you need to seriously consider what you’re signing.”

The North Carolina Attorney General’s office says it’s also investigating MV Realty. Also, in July 2022, Better Business Bureau said online that its agency conducted an investigation and determined that the BBB files contained a pattern of consumer complaints alleging problems with the contract. Specifically, consumers are claiming homeowners’ advantage program contracts are unfair and, in some cases, poorly explained, according to the BBB, MV Realty is working with his BBB. improved the customer experience.

Regarding Calder, MV Realty provided us with the following statement: She then put the house up for sale to another agent who earned a commission. We only covered this cost because we chose.I don’t know why Mrs. Calder didn’t allow MV to put her house up for sale, but this would give MV a 3% of that. Ms. Calder has offered no explanation as to why she received $800.00 and three months later she does not use MV as her real estate listings agent as she promised. ”

Regarding the Memorandum of Understanding attached to the property by MV Realty, the company said: If the homeowner attempts to sell the home without giving MV the opportunity to represent it. ”

In regards to complaints and investigations, a representative added that they are working diligently to respond to inquiries, saying, “The company remains committed to consumer disclosures and is constantly adding to these disclosures. Some of the disclosures include, but are not limited to: clarification of the contract itself, including a description of the 40-year term, the submission of a memorandum, and termination charges and the circumstances under which they expire; The same disclosure is highlighted again in the one-page leave – endorsement signed by the customer. website Prominently display these same important program features. Extensive as well as Frequently Asked Questions section. “

Regarding the 40-year Homeowners Benefits Agreement, a representative said: The seller has only owned it for 6 months, but after that he has no liability to MV if he successfully sells the house on the same terms. ”

The best advice before agreeing to any program or contract is to read all the paperwork, terms and conditions carefully and don’t let money get in the way. If you don’t understand, hire a lawyer to read the paperwork or have someone help you.

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