Michigan Attorney General Dana Nessel has closed a multi-year investigation into EasyKnock, Inc., securing an agreement that permanently bans the sale-leaseback company and its related entities from operating in the state.
The settlement resolves state allegations that EasyKnock utilized deceptive business practices to target financially vulnerable homeowners who were behind on their mortgage or property tax payments. Along with the permanent operating ban, the agreement establishes an $85,000 settlement fund to compensate affected Michigan customers and mandates strict operational reforms for the entities currently managing the company’s remaining accounts.
The state’s investigation began in 2024 when the Department of Attorney General issued a cease-and-desist notice to the company. According to state investigators, EasyKnock marketed a “Sell & Stay” program geared toward homeowners with high home equity but low credit scores. Under this setup, homeowners signed over the deed to their property, sold it to EasyKnock, and then remained in the house as renters under a lease agreement lasting up to five years.
While marketing materials claimed homeowners would receive 100 percent of their property’s value, state investigators found that consumers actually received only a fraction of that amount in cash. The rest of the equity was heavily eroded by processing fees, closing costs, and mandatory repair holdbacks.
The program featured an option for residents to buy back their homes, but state officials noted that doing so required qualifying for traditional financing—the exact type of credit these consumers lacked in the first place. The financial hurdle grew steeper each year due to built-in annual increases for both the monthly rent and the final repurchase price. If a homeowner failed to buy back the property, EasyKnock sold the home to a third party on the open market, keeping the profits from rent, processing fees, and the final liquidation to recoup its initial investment.
“Michiganders struggling to keep a roof over their heads shouldn’t be exploited by predatory companies,” Attorney General Nessel said in a statement. “I am proud of my office’s work in securing this settlement and protecting future homeowners from deceptive practices. When families fall behind on their mortgage payments or property taxes, they can become targets for bad actors offering magical solutions. Consumers must be wary of arrangements that require them to transfer ownership of their property, and they should thoroughly understand the long-term consequences before entering into any agreement.”
EasyKnock shut down its primary business operations in late 2024, but its existing portfolio of Michigan homes is currently owned by EK Real Estate Fund I, LLC, and managed by NESE Property Management Company LLC.
Under the terms of the newly finalized agreement, the $85,000 fund will be distributed among previously identified consumers harmed by the program. Furthermore, EK Real Estate Fund I and NESE Property Management Company are legally required to overhaul how they handle third-party home sales, including placing strict limits on the types of fees and deductions they can subtract from a consumer’s final payout.
The managing entities must also comply with all local and state housing ordinances. This includes refunding tenants who can prove they mistakenly paid for rental registrations or municipal inspection fees that legally fell on the landlord. Additionally, the companies must now offer tenants the option to have their on-time monthly rent payments reported to major credit bureaus to help rebuild their credit history.
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