FHA Book

HUD May Owe You Money!

According to SignOnSanDiego.com, getting a refund for paying off your FHA Loan early, might not be as easy as HUD makes it sound. The article tells of two California homeowners who didn’t have the best of luck. As a result of the scant details provided by HUD, one homeowner assumed it was a scam. The other sent in the proper paperwork and never heard a thing. The roadblocks to getting a refund are numerous:

HUD says lenders must notify the department when an FHA-backed loan is paid off and must tell borrowers how to get a refund. The agency said that when it hears of an FHA loan being paid off, it mails a refund check in seven to 10 business days. HUD says it mailed 200,000 refunds last year totaling $110 million.

But even that can be problematic. While HUD claims that lenders typically provide new mailing addresses for those owed refunds, a review of HUD policies shows that the agency sends refunds to a homeowner’s last known address, which is often the house he or she just sold and moved from.

To find out if HUD owes you a refund, visit the searchable database on the department’s website.