Controversial Real Estate Company EasyKnock Unexpectedly And Suddenly Shutters Their Operations
Controversial lender EasyKnock announced abruptly on Thursday that it is going out of business. Easyknock offered controversial sale-leaseback deals to financially strapped homeowners.
The company promised to help people “unlock” the equity in their homes. They did this by buying the property from them. Then letting them remain in the home as a renter.
This type of real estate transaction is known as a sale-leaseback. It focuses on homeowners who struggle to get traditional loans due to bad credit or insufficient income.
Homeowners Are Big Losers In These Types Of Deals
The company faces over two dozen lawsuits around the country. In addition to several investigations by state attorneys general.
In May, the Michigan AG Dana Nessel’s office sent the company a cease and desist letter. The letter demanded the company to end certain unfair and deceptive trade practices.
Naturally, the company denies any liability in these lawsuits and investigations.
The Federal Trade Commission issued a consumer alert about the “risky business” of sale-leasebacks.
