“What we’ve been doing over the last year is really … understanding how we can best work with the existing portfolio consumers and ensure that they are successful,” he said.
“That’s gotten us to a point where we really understand how to manage the portfolio and how to work with consumers who are in this position. Now we can relaunch it and open it up to more consumers again.”
American households are facing record debt levels and tighter credit standards. Total household debt increased by $197 billion in the third quarter, reaching a record $18.59 trillion. Federal Reserve Bank of New Yorkmid-year 2025 Household debt and credit report. Mortgages account for more than $13 trillion of that total.
Meanwhile, about half of applications for home loan lines of credit were rejected in 2024, according to the US newspaper Consumer Financial Protection Bureau (CFPB).
“The sources of relief for the average homeowner to remain in their home while resolving their debt are limited,” Abdullah said. “The premise of the company has always been to provide that relief through co-ownership. That was true when the company was first founded, and it is just as true as we relaunch and an affordability crisis looms.”
Balance Homes’ equity sharing model targets homeowners burdened by rising debt and who may have substantial “captured” equity but few viable ways to access it. The company said its approach is to prioritize long-term stability and keep families in their homes.
Unlike co-buying models that help consumers purchase homes, Balance Homes targets homeowners who already own property and have built up equity but do not have access to traditional lending products. Many of his clients are “home-rich” but have credit constraints due to life events such as job loss, medical emergencies or divorce, Abdullah said.
“They may be sitting on $100,000 or more of equity that they don’t have access to,” he said. “The only way they can get that equity is to sell their home, and that shouldn’t be the only option.”
Under the Balance Homes model, the company offers a release of equity through co-ownership, typically taking a majority stake, while allowing homeowners to retain meaningful ownership. Proceeds are often used to pay down existing mortgage balances and consolidate high-interest debt, with the goal of reducing monthly payments and stabilizing household finances.
The partnership is structured as a seven-year agreement, during which time homeowners can buy out Balance Homes at fair market value, refinance with a traditional mortgage, sell the home on the open market or ask Balance Homes to purchase the remaining equity.
“With the support of Falco Group, there is a shared belief in more options and more compassion for homeowners as Balance Homes returns to the marketplace. When it comes to Americans and their homes, we believe there is a good faith partner. It is your family home and it is your family’s future,” Abdullah said.
Abdullah announced that Balance Homes quietly and officially relaunched in December 2025 and began marketing directly to consumers. The company said it expects to close its first new transactions this month, with additional deals in the pipeline for February. The company currently operates in six states and plans to expand to other markets in the coming months.
“We believe Balance Homes is building a model that reflects the realities many homeowners face today,” said Richard Anderson, managing director at Falco Group. “Access to home equity should not be limited by rigid financial structures or temporary setbacks. Our investment supports an approach that gives families flexibility, breathing room and a clearer path through moments of uncertainty.”
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