Senate Probes EasyKnock After Company's Sudden Closure

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Easyknock,Sale-Leaseback,Senate Investigation

A group of U.S. Senators are investigating the now-defunct real estate company EasyKnock after its sudden closure and allegations of financial harm to homeowners who entered into sale-leaseback agreements.

EasyKnock says its sale-leaseback deals have helped hundreds of people improve their finances. An NPR investigation found some homeowners who enter into these deals lose tens of thousands of dollars and few buy their houses back.A group of U.S.

Senators has launched a probe into a now-defunct real estate company that offered homeowners a chance to'unlock' their equity through a unique sale-lease arrangement, but which an NPR investigation found cost some residents thousands of dollars and sometimes their homes. This is the latest development in a series of challenges for EasyKnock, which announced its sudden closure earlier this month. In a letter to EasyKnock on Monday, citing NPR's reporting, senators expressed concern about how these deals have affected homeowners who turned to the company in moments of financial stress. They asked what the closure will mean for people who are still renting homes they sold to the company.'We are deeply concerned about EasyKnock's lasting impact on vulnerable homeowners, including homeowners with pending residential sale-leaseback agreements with your company, and the extent to which the company will be handling these agreements in the wake of its abrupt closure earlier this month,' reads the letter. It was signed by seven lawmakers, all Democrats or Independents, including Sen. Elizabeth Warren, D-Mass., Sen. Richard Blumenthal, D-Conn. and Sen. Bernie Sanders, I-Vt.EasyKnock did not immediately reply to a request for comment, but in the past company officials said its deals have helped people stabilize their finances. The Senate probe seeks information about how many homeowners repurchase their homes after entering into a sale-leaseback deal with EasyKnock, and how many have been evicted. Senators are also asking for clarification about why EasyKnock decided to suddenly close its doors on Dec. 5 and what that means for the dozens of homeowners who are currently suing the compan

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