A company that turned homeowners into renters abruptly shuts down

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EasyKnock, which pioneered 'sale-leaseback' deals for struggling homeowners, abruptly closes its doors

Randee Noggle stands in front of her home in Taylor, Mich. on June 30, 2024. She bought the house in 2018 using money she inherited from her grandmother.

EasyKnock promises to help people"unlock" the equity in their homes by buying the property from them and then letting them remain in the home as a renter. This type of real estate transaction, known as a sale-leaseback, focuses on homeowners who struggle to get traditional loans due to bad credit or insufficient income.

Neither the statement on EasyKnock's website, nor notices sent to current clients, explained the cause of the company's sudden closure. EasyKnock did not respond to NPR's request for comment.The news came as a shock to Randee Noggle, who sold her house in Michigan to EasyKnock in April 2023. She had hoped that it would help stabilize her family's finances, which took a hit during the pandemic. Instead, she said it made things worse.

EasyKnock markets itself as the nation's first technology-enabled residential sale-leaseback company. The types of transactions it offers have been facing a heated debate in the courts over whether they are subject to mortgage regulations that protect homeowners. EasyKnock argues that its sale-leaseback deals are not loans, and therefore those laws don't apply.

NPR's investigation found that people rarely repurchase their homes. Even after EasyKnock's closure, it's still unlikely people like Noggle will be able to buy their houses back, said Tutt, who reviewed several of EasyKnock's contracts at the request of NPR.

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A company that turned homeowners into renters abruptly shuts downEasyKnock, which pioneered 'sale-leaseback' deals for struggling homeowners, abruptly closes its doors
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