Colorado Warns Homeowners About Predatory Contracts

At the moment, it’s been pretty well documented that Colorado’s housing market is definitely not in a great place right now.

In general, home ownership has taken a pretty significant hit recently.

In fact, we rank 47th in the country in terms of home ownership rank, and we’ve definitely fallen quite a bit. Back in 2014, we had a homeownership rate of 64.8%, and by 2023 it fell down to 62.7%. 

With the prices of housing already being high in Colorado, what makes it worse is the fact that we are one of the worst states to save money in. 

To be exact, we rank as the 9th worst in the country. If you couldn’t pick up on the theme quite yet, a big reason is because Coloradans typically spend more on housing than the rest of the country.

With all of this being said, the current housing market here means that some truly bad actors can come through the fold.

Recently, Colorado has warned its residents that one realtor has been handing out contracts that on paper seem good, but in reality have serious and glaring drawbacks.

Colorado Revokes MK Realty’s License Over Predatory Contracts

If you have been keeping up with the current state of realty over the past few weeks, you may have come across the name MK Realty.

In fact, some people may have signed a contract with them in Colorado as well.

However, in a move that many other states have made as well, Colorado has recently revoked MK Realty’s brokerage license. 

The main reason is because of their horrible predatory contracts, and Colorado’s Department of Regulatory Agencies has warned consumers of the serious ramifications they pose. 

The contracts themselves are called “Homeowner Benefit Agreements”, and within the fine print lies a homeowners worst nightmare.

What is Wrong With MK Realty’s Homeowner Benefit Agreements?

For quite some time now, people have noticed just how shady MK Realty as a company is.

It was started by Amanda Zachman, who appeared on the show “Big Brother” and proceeded to make racist remarks on camera.

Afterwards, she started MK Realty in 2014, and for some time now many people have been calling the business a scam.

What they do is find homeowners who are down on their luck and are in pre-foreclosure on their homes, and offer them quick cash through the Homeowner Benefit Agreements.

According to Alabama Realtors, this money can range from a few hundred bucks to a couple thousand dollars. All they have to do is sign a contract. 

However, in the process of reading the long and confusing contract, many people miss on one major stipulation that could ruin their lives; giving MK Realty the ability to sell their homes. 

Even if you catch that stipulation and still sign, it gets worse. Within the contract, many people also miss its binding for 40 years. 

The only way you can leave the contract is to pay MK Realty 6 percent of the home’s value. 

That means if your house costs $552,622, the average home price in Colorado, you would have to pay $33,157.62 to get out of the contract. 

If anything, it’s important for all homeowners in Colorado to know about the prevalence of such predatory contracts.