HUD stands for Housing and Urban Development

HUD refunds are owed to homebuyers for upfront mortgage insurance fees they paid to FHA. HUD attempts to contact homeowners who are due refunds through a series of mailings. After two years, HUD is required to release, under the Freedom of Information Act, the names of all homebuyers who have not collected refunds.

Why the Money is Available

At the time of your closing of your HUD/FHA loan, the loan officer is supposed to inform you of the 1/2% premium held, unfortunately this is seldom done, this means the money is waiting to be returned. This creates a great need for tracers to locate and refund the money.

Each borrower who is required to secure a HUD/FHA commitment pays 1/2% or 1/2 point for the full term of the loan. These premiums are paid in advance (by the Mortgage Company) at closing. When there is an early termination of the mortgage by then means other than by default, unused money is due back to the borrower. These funds are held in a non-interest bearing account, until claimed by the borrower.

The General Service Administration in March 1986 ordered HUD/FHA, to make a good faith effort to locate owners of these unclaimed funds.

There are thousands of dollars being withheld.

Contact me if you think you are due a refund from HUD and I will personally help you locate funds owed to you from the sell of your house. There is no fee for my service. Donations are more than welcome, but never expected.