Page 2 Real Estate Questions & Answers

Does HUD Owe You a Refund?

If you had a HUD/FHA insured mortgage, you may be eligible for a refund on part of your insurance premium or a share of the earnings.

You may be eligible for a refund of a portion of the insurance premium if you:

acquired your loan AFTER September 1, 1983
paid an upfront mortgage insurance premium at closing AND
did not default on your mortgage payments.

Review your settlement papers or check with your mortgage company to determine if you paid an upfront premium.

Distributive Share:

You may be eligible for a share of any excess earnings from the Mutual Mortgage Insurance fund if you:

originated your loan before September 1, 1983
paid on your loan for more than seven years, AND
HUD processed your FHA insurance termination BEFORE November 5, 1990.

Exceptions:

Assumptions: When an FHA insured loan is assumed, the insurance remains in force (the seller receives no refund). The owner(s) of the property at the time the insurance is terminated is entitled to any refund.

FHA to FHA Refinances: When an FHA loan is refinanced, the refund from the old premium may be applied toward the upfront premium required for the new loan.

Claims: When a mortgage company submits a claim to HUD for insurance benefits, no refund is due the homeowner.

Statute of Limitations: HUD is not liable for a distributive share that remains unclaimed 6 years from the date notification was first sent to the last known address of the mortgagor.

To find out you can go to HUD'S HOME PAGE and check online with HUD'S online check list - you can search the database by name or by case number. If your name appears on the list, call 1-800-697-6967 for more information on getting your refund. If your name is not on the list, but you believe that your are owed a refund, call the same toll free number to ask about your status. For more information about refunds, you can go to HUD'S HOUSING HOMEPAGE.

If you hear of anyone who needs real estate services please direct them to this web site or have them contact me at tim@talktotim.com

Your real estate professional,

Tim Lynch
CRYE-LEIKE REALTORS
901-756-8900

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