HUD Mortgage Insurance Refund

HUD Mortgage Insurance Refund: 

Process HUD/FHA Refunds - Program History
The Department of Housing and Urban Development (HUD/FHA) works with several lenders nationwide in assisting potential home buyers in getting loan approval. Through an agreement with these lenders HUD/FHA will step in and make the required monthly mortgage payments if the people cannot. This in turn enables the individual to get loan approval and to purchase the home with much less down. This has helped millions of people buy homes who otherwise would never have been able to qualify.
In order for HUD/FHA to assist these people they must pay into an insurance policy on that loan. There are two insurance policies used with this program. One of these policies is the One Time Mortgage Insurance Premium (MIP). This policy requires one payment to be made upfront at the time the mortgage is acquired. The other policy is the Mutual Mortgage Insurance policy (MMI). This policy is paid during the life of the loan.
These people were told that if they paid back the loan without defaulting on any mortgage payments, either by selling the home, making the required payments, or by refinancing the home, they would be entitled to a refund on the amount that was paid into the insurance policy.
HUD/FHA even sends them a letter but if they do not make an attempt to collect the refund for a period of two years, the refund is then deposited into an unclaimed account. The result is that there are currently thousands of unclaimed cases resulting in millions of unclaimed dollars.
In 1986, HUD/FHA established an effective way of getting this money back to the people. They decided to publish state lists of these unclaimed refund cases and allow anyone who is interested to assist in getting these unclaimed refunds to the people they are owed to. You are allowed to contact these people, let them know they have an unclaimed refund, provide them with a ''found case'' form, and then collect a generous processing fee for the assistance you provide. The processing fee you collect can be as much as 20% of the amount of the refund.

How to use the HUD mortgage insurance refund state lists - HUD refund tracing
The highlighted area represents an unclaimed refund case.

The refund cases are presented in a format that can be somewhat confusing at first glance, but this will help you understand them.

The first ten digits on the left is the case number for that particular refund. The case number starts with three numbers then a dash followed by six more numbers. In this example the case number is 441-591710. The following numbers represent the amount of the refund. For example 0942.390000000.00 would mean that the amount of that refund is $942.39. Following the dollar amount of the refund is the date when the refund became available. In this example the date is 01/22/2003. You will see additional dates listed following the first date but these dates are not relevant to processing the refund. Following the last date, you will see the address, city, state, and zip code of where the HUD/FHA insured mortgage was paid off. In this example the address is 210 Hilltop Rd. Norristown, PA 19401. Finally you will see the name of the refund recipient in a last name, then first name format. Sometimes an additional address is listed after the name of the refund recipient but it is not relevant to processing the refund.

This information is only needed for the Found Case form which is filled out and sent to the refund recipient after you locate them.

Keep in mind that the most recently added cases will be located at the bottom of the list.


  • Pay the lead list fee. A nominal fee of  $20 is what i usually charges to obtain the list of names, last known addresses and telephone numbers for the borrowers who are due insurance refunds.
  • 2
    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.
  • 3
    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.
  • 4
    Send the Tracer Found Case Form to the borrower by mail, email or fax.  Have the borrower complete, sign and return the form to you to process the refund on their behalf.
  • 5
    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.

  • The Found Case Form
    The Found Case form is the form you will provide to your clients when you locate them and is the only form you will have to fill out. The first part is your information. The second part is the updated address information of the person who is due the unclaimed refund. The third part is the property address where this HUD/FHA insured mortgage was paid off. The areas titled "Date Title Acquired" - "Date Property Sold if Applicable" - "Date Mortgage Was Paid Off", are for your client to fill in.
    Once the Found Case form is completed it is sent to HUD/FHA. This will start the process of issuing a refund to your client. About two weeks after the completed Found Case form is sent in, your client will receive form HUD-27050-B "Notice of Distributive Shares or Premium Refund."
    The Found Case form:

    Order By Credit Card, or PayPal Funds Transfer

    You can order the HUD/FHA Refund List  securely through PayPal by credit card, or by funds transfer from your PayPal account. Simply use the buy now buttons below to complete your purchase.
    Your HUD/FHA Refund Processor List will be sent to the E-mail address you provide during your purchase. To access your List, simply open the e-mail that it is attached. And Just Copy The List
    So look In Your E-mail Account For The List


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