U.S. Sen. Elizabeth Warren (D-MA) is among a group of senators seeking more information on a real estate company that recently shut down.
The company, called EasyKnock, recently closed its doors on Dec. 5. The senators are probing the sudden shut down, along with the company’s allegedly deceptive and predatory business practices.
Warren, along with U.S. Sens. Richard Blumenthal (D-CT), Chris Murphy (D-CT), Tina Smith (D-MN), Chris Van Hollen (D-MD), Bernie Sanders (I-VT), and Peter Welch (D-VT), sent a letter to the EasyKnock Founder and CEO of EasyKnock seeking more information.
Before its recent closure, EasyKnock purchased homes from financially distressed homeowners through its “Sell & Stay” program. According to the senators, the company promised they would “receive 100 percent of their home’s value without having to move.”
However, consumer lawsuits and multiple state attorneys general have alleged that EasyKnock’s deceptive advertising and business practices often left former homeowners worse off than they were before.
“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,” the lawmakers wrote.
Reports alleged that EasyKnock customers rarely received anything close to the full market value of their homes. Further, there are allegations that the company employed predatory tactics, such as consistent rent increases in spite of a lack of improvements to properties, placing customers in financial positions where they could no longer repurchase their homes.
“Across America, the allegations against EasyKnock followed a similar pattern: EasyKnock made misleading statements about services to entrap vulnerable homeowners only to break its promises at the expense of working families,” continued the lawmakers.
In December 2023, the Massachusetts Attorney General’s Office entered into a settlement with EasyKnock in which the company agreed to permanently halt sale-leasebacks in Massachusetts and make changes to its business practices.
This month, EasyKnock abruptly shut down, which left customers even more confused.
“EasyKnock’s decision to ‘shut down’ raises even more questions about how it will handle ongoing agreements and properly compensate homeowners who were negatively affected by the company’s actions,” concluded the lawmakers.
The senators are requesting information about EasyKnock’s past business practices and its abrupt closure by Dec. 30, 2024.