Easyknock buys your home, pays off your mortgage and other recorded indebtedness, and releases your home equity back to you. You continue to live in your home as a renter, with the flexibility to buy back or move at any time.
You tell us about your situation (ie; past-due mortgage payments, need finances to move, want to start a new business). We create an agreement that meets your financial needs and time frame (lease length).
Scenario: The Smiths own a house worth $240,000 and they have a mortgage with a current balance of $80,000. They want to invest money into starting a new business, but they are behind on their mortgage and have a below average credit score.
Solution: EasyKnock will buy the Smith’s home for $150,000, paying off the mortgage, allowing the Smiths to walk away from the closing with $70,000 in cash. The Smiths then become tenants for 2 years. At any time during the lease term, the Smiths can buy the house back for $160,000 OR request the house be listed with a local realtor and sold at fair market value. Once sold, the Smiths would then receive the net sale proceeds over $160,000 (i.e. $240,000 – $160,000 = $80,000 – transaction costs).
Home refinancing criteria are very rigid, thereby often disqualifying many individuals that apply for loans and refinancing. Everyone’s situation is different, we get that. So, we’ve created a unique solution to help homeowners access their equity.
Don't have great credit or make a ton of money
Don't qualify for a HELOC or other loans
Want to tap into your equity now, but don’t want to move
Need cash and time to find a new home
Financial freedom for new opportunities - start a new business or investment
Have time sensitive expenses
You need some of your home equity now, but might want to buy back your home at some point.
We agree on a purchase price, rental price, buyback price, and initial lease term.
We execute contract to buy your home, (this will include paying off mortgage). Closing takes 30 days (we can expedite if necessary).
We close, pay-off any indebtedness on the property and you get the first installment of your money!
You continue to live in your home as a tenant for at least one year, to renew just provide three months notice!
Buy back your home or put on the market at any point. If sold, you get the remainder of your equity.
- Tommy, EasyKnock customer from Texas
- Alex, mortgage loan officer from Georgia
- Terry, Indiana Real Estate Agent
- Barry, EasyKnock customer from South Carolina
Sell and Stay is for single family homeowners who need to access their home equity, but do not want to, or are not ready to move.
If you don't qualify, or fees are too expensive, Sell and Stay may be a great solution.
We aim to have you pay “market rent.” Market rent is based on the rent being paid for similar homes in your area.
A year is the standard minimum lease length. Longer terms are available, or, you can renew your year lease with 3 months notice.
Typically, it will take 30 days to close. However, we can expedite if necessary.
The “Sell” is governed by a purchase and sale agreement, and the “Stay” is governed by a residential lease.
We use lawyers to draft our agreements, which are then sent to you. You or your lawyer will be responsible for reviewing the documents. We highly recommend you use a lawyer too!
Our lease includes an “Option Agreement” with specific language that allows you to buy back your home at any point (for the buyback price), as long as you have the funds.
The Lease with an Option Agreement also has language allowing you to authorize the sale of your house at any time. You will have the ability to control the timing, asking price, and real estate agent, if you’d like. If a sale is finalized prior to your lease end date, you are able to terminate the lease early.
We are happy to refer you to our partners. Your lawyer is also able to assist with this.
You will be given written notice of the default and the opportunity to fix the problem (aka cure the default). If you do not cooperate and cure the default (fix the problem), we may be forced to evict. Even if your lease ends with an eviction, we will still give you the net sale proceeds after deducting the back rent, legal expenses and selling costs. Please note, we will sell the property using an auction-sale process, to prevent conflicts of interest and ensure transparency around this sale.
The tenant is responsible for maintenance including cutting the grass, snow removal and appliance repairs.
Easyknock will pay the property taxes.
You will not have a local property manager.
A lawyer is not needed, but recommended.
We recommend all tenants consider renters insurance.