Cash-strapped Americans are putting their homes on the line for a quick buck — but is it worth the risk? What you need to know about the country's growing 'leaseback' trend

To be fair, EasyKnock has earned overall high marks, with 4.3 out of 5 stars based on 246 reviews on Trustpilot. But it’s also been called out on the Reddit subgroup r/RealEstateAdvice, with comments such as “company full of liars and crooks stay away” and “Worst. Company. Ever. Pushy pushy until you sell to them then they disappear.”

Regardless of the outcome of the lawsuit, Shreffler’s eviction seems strange given that EasyKnock co-founder Jared Kessler claims to have started a housing nonprofit, The Stay Mission, “to fight evictions and foreclosures for everyday Americans” per his LinkedIn page.

So who gets to stay, exactly?

3 alternatives to a sale-leaseback

Times are tough for many American homeowners, especially with soaring property taxes and mortgage payments. But the following options for getting cash out of your home are often less risky and more effective.

• Home equity line of credit (HELOC). With a HELOC, you’re under no obligation to use the available funding, meaning that it’s much better suited if you need a financial cushion or a short-term loan. Think of it as a credit card-type account where what you take out is secured against the value of your house. You’ll only owe what you borrow, but you do have to pay monthly interest.

• Refinancing. If the Federal Reserve continues rate cuts at its November meeting, as the market seems to believe will happen, mortgage rates could continue to drop. A 30-year mortgage now averages 6.32%, which is decent compared to 7.79% in October 2023. That would put more homeowners in a position to refinance at a lower interest rate and turn some equity into cash.

• Reverse mortgage. A home equity conversion mortgage (HECM), the most popular type of reverse mortgage, is offered through the Federal Housing Administration. But there’s a catch: You must be 62 or older to get one, own all or a considerable amount of your property and not be delinquent on any federal debt. You essentially borrow money against your home and don’t make monthly mortgage payments until you no longer occupy the home. But keep in mind, the money you borrow, plus all interest and monthly fees can add up quickly. And be sure not to fall for common scams from contractors or those who target veterans with “special deals.”