How to Process FHA HUD Refunds

Since 1986, the Department of Housing and Urban Development and the Federal Housing Administration(HUD/FHA) have published monthly lists of unclaimed insurance refunds in each state. The lists are available for a fee, ranging from about $20 to $125 per state, to anyone who would like to contact eligible recipients, make them aware of the refund and charge a fee for doing so. The people who track down recipients are called tracers.

Things You'll Need

• Monthly list from HUD/FHA
• Notification letter
• Found case form
• Power of attorney form

Instructions

What to do

1. Call HUD at [phone] to order state lists and forms, payable by a certified cashier's check or money order. The cost will vary by state. The lists will give you the address of the home that the refund was issued on, the last known telephone number and the federal case number.

2. Track down refund recipients through state insurance offices or ZabaSearch.com, which will give you the last five addresses of people you are searching for.

3. Send a notification of refund and the power of attorney form, which authorizes the tracer to receive and cash the check for the recipient.

4. Send the signed power of attorney form into HUD/FHA to receive a U.S. Treasury check, which will be made out to the tracer. Allow six to eight weeks for processing.

5. Write a check to the refund recipient for the amount of the refund less the agreed-upon finder's fee. The agreed-upon amount can be a fixed fee set by the tracer or a percentage of the refund, with no maximum limit.

Tips & Warnings

• Watch out for companies that charge a large fee to give you information you can easily get yourself from the government. They claim to get it to you faster. Do your research carefully.

• Be aware that once people are notified of their unclaimed money, they might contact HUD/FHA themselves and cut you out of the deal.

References

• American Refunds Services
• United Refund Services
• HUD