HUD Refund Trace
Unclaimed HUD refunds are owed hundreds of thousands of homeowners who have or had FHA insured mortgages. Each year the Federal Housing Administration (FHA), the government agency which insures mortgages made by local lenders, estimates the number of defaults it will likely experience. Based on this prediction, it sets the insurance premium home buyers pay during the year. If fewer defaults occur than predicted, borrowers share in the funds remaining via HUD Mortgage Insurance Premium (MIP) Refunds and Distributive Shares, a portion of the excess earnings from the Mutual Mortgage Insurance Fund.
Because many homeowners fail to notify HUD of a new address after a move – the US Postal Service will only forward mail for a six-month period, followed by a six month period of address correction – tens of thousands of homeowners and those who have sold homes with FHA insured mortgages are entitled to unclaimed HUD refunds worth hundreds of millions of dollars.
Refunds average between $800 – $1500 per homeowner. These amounts are not listed in state unclaimed property databases as they are issued by HUD, an agency of the US. federal government, and amounts due and owing by federal agencies are exempt from state reporting.
Be aware some unscrupulous ‘asset finders’ specialize in locating lost homeowners for an exorbitant fee, often as much as 50% of the total refund. For claims information and a search of the HUD unclaimed refund database complete the form below.