The class imbalance problem is a well-known classification challenge in machine learning that has vexed researchers for over a decade. Under-representation of one or more of the target classes (minority class(es)) as compared to others (majority class(es)) can restrict the application of conventional classifiers directly on the data. In addition, emerging challenges such as overlapping classes, make class imbalance even harder to solve. Class overlap is caused due to ambiguous regions in the data where the prior probability of two or more classes are approximately equal. We are motivated to address the challenge of class overlap in the presence of imbalanced classes by a problem in pervasive computing. Specifically, we are designing smart environments that perform health monitoring and assistance. Our solution, ClusBUS, is a clustering-based under sampling technique that identifies data regions where minority class samples are embedded deep inside majority class. By removing majority class samples from these regions, ClusBUS preprocesses the data in order to give more importance to the minority class during classification. Experiments show that ClusBUS achieves improved performance over an existing method for handling class imbalance.