How to Be a Tracer for Processing Mortgage Insurance
Being a tracer for processing mortgage insurance is a great opportunity that requires minimal upfront cost and can be completed largely at home. The role of a tracer is to contact homeowners who are eligible to receive a mortgage insurance refund but might not even realize it. While tracers do not work for the government, they do work to get mortgage insurance refunds that are owed to claimants from Housing and Urban Development (HUD), so the funds are guaranteed if the claimant is successfully contacted. The tracer can then request a percentage of the refund as a fee for the work that is provided.
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Instructions
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Contact HUD to purchase the state listings of claimants. These lists generally cost at least $20 per state and provide names, contact information in the form of a last known address and details about the amount of money the claimant is owed.
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Spend time reviewing the list and familiarizing yourself with the information. The HUD lists often contain thousands of names, so you'll need to decide if you'll be focusing just on the area where you live, or if you'll be expanding your focus to include more of the state.
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Create a professional tone and appearance. This might include professional letterhead and a form letter that will provide the claimant with substantial information about the nature of mortgage insurance refunds and why the government owes them money. Consider using sites such as VistaPrint to inexpensively design and print professional looking letterhead and mailing envelopes. Put together a phone script you can follow when you contact the individual.
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Contact the claimant, either by mail or by phone if the claimant still lives locally and a phone number is available. The majority of claimants are unaware that they are eligible for the refund, so be sure to provide enough detail to ensure the claimant that your information is legitimate.
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Establish an agreement with the claimant about your fee. Tracers usually charge a fee that might be from 20 percent to 30 percent of the expected refund. Some tracers request part of the fee up front, with the rest due once the refund has been processed. Others will request a signed agreement, stating that the claimant will provide the fee in full after processing. Print an agreement on letterhead and send it to the claimant to sign and return to you.
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Process the claimant's application by sending it to HUD. The turnaround time for refund processing can take about six weeks, so be sure to let the claimant know about the time required.
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Collect payment from the claimant once the refund is processed. If you agreed to partial payment, this is the time to collect the balance of the fee.
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Tips & Warnings
Beware of companies that advertise information to teach you how to be a tracer for a fee. These initial fees usually run from $20 to $80, but the information provided from the company can all be located for free via a web search. The only upfront cost that tracers should pay is the cost for the state listings and any professional letterhead or stationery required to fulfill the job tasks. HUD does not officially support third-party tracing businesses, but it is legal to be a tracer as a full-time or extra source of income. The tracer is responsible for establishing a fee and arranging for payment from the claimant, so HUD is not accountable for ensuring that the tracer is paid.
