"Through last year, what we've been doing is really understanding how to best work with the existing portfolio consumers and make sure that they are successful, he said. That allowed us to get to a point where we really understand how to operate the portfolio and how to work with consumers who are in this position. Now we can relaunch it and open this back up to more consumers."
"U.S. households are facing record debt levels and tighter credit conditions. Total household debt rose by $197 billion in the third quarter, reaching a record $18.59 trillion, according to the Federal Reserve Bank of New York's midyear 2025 Household Debt and Credit Report. Mortgage balances account for more than $13 trillion of that total. Meanwhile, about half of applications for home equity lines of credit were denied in 2024, according to the Consumer Financial Protection Bureau (CFPB)."
"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 now as we relaunch and an affordability crisis looms. Balance Homes' equity-sharing model targets homeowners burdened by rising debt who may have substantial trapped equity but few viable ways to access it. The company said its approach is designed to prioritize long-term stability and keep families in their homes."
Balance Homes relaunched its co-ownership equity-sharing product to help homeowners access trapped home equity and maintain housing stability amid rising household debt and tighter credit. The company stabilized and serviced an existing portfolio over the past year to learn how to operate the portfolio and work with affected consumers. U.S. household debt reached $18.59 trillion in Q3, with mortgage balances over $13 trillion, and many HELOC applications were denied in 2024. The equity-sharing model targets homeowners who are house rich but credit-constrained due to events such as job loss, medical emergencies, or divorce, prioritizing long-term stability and keeping families in their homes.
Read at www.housingwire.com
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