How to Trace HUD & FHA Mortgage Insurance Refunds
The Federal Housing Administration (FHA) is an agency that falls under the U.S. Department of Housing and Urban Development (HUD) and both organizations provide government-backed mortgage programs to help make home ownership more affordable and available to the average American. At times, the FHA owes past mortgage borrowers money for insurance refunds, but doesn't have current location information in order to send the refund money back to the borrower. A mortgage insurance refund processor is a work-from-home position where you can help the FHA to trace the HUD and FHA borrowers due the insurance refunds and get paid in the process.
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Instructions
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Obtain a lead list by contacting the FHA. The fastest and simplest way to obtain a list of borrowers that are due insurance refunds is to contact the FHA directly. You can contact the FHA online or by phone to request a lead list of borrowers who have unclaimed insurance refunds that are due to them (see Resources).
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Pay the lead list fee. A nominal fee of about $20 is what the FHA usually charges to obtain the list of names, last known addresses and telephone numbers for the borrowers who are due insurance refunds.
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Contact the borrowers from the list at their last known telephone number. If you cannot reach the borrower by phone, then try mailing a letter to their last known address to alert them to the fact that they have an insurance refund that is unclaimed. If you cannot reach the borrower either way, then you will have to conduct online people locator searches to try to find the borrower's new address or phone number.
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Discuss your service fee with the borrower. Once you reach the borrower, make them aware of the insurance refund and discuss the fee for your trace and refund processing services. Generally, the fee you receive is about 20% of the refund amount, but this is negotiable. You can decide how much you want to make from each transaction.
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Send the Tracer Found Case Form to the borrower by mail, email or fax. This form can be obtained from the FHA. Have the borrower complete, sign and return the form to you to process the refund on their behalf.
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Review the form that the borrower returns to you to make sure it is accurately and completely filled out. Complete the section of the form asking for the tracer's contact information and fill in the unclaimed insurance funds case number. Then submit the form to FHA via regular mail.
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Tips & Warnings
Once the insurance refund is processed, the FHA cuts one check to you for the percentage of the insurance refund that is your fee. The FHA cuts a second check to the borrower, which is the amount of the insurance refund minus the tracer fee.
References
Resources
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