January 10, 2011
There are two possible definitions of the term, “FHA Tracer”. The most common is a third-party company that contacts home owners with an offer to help track down a possible refund from the FHA for mortgage insurance premiums. These companies charge finder’s fees and ask for payment in exchange for their services.
The other definition of the phrase FHA tracer is connected to the FHA itself. While the FHA doesn’t use the term “tracer” in connection with its activities, there is an ongoing effort to identity homeowners the FHA owes a refund to. A third-party company, Immediate System Resources, was hired by the government to locate these homeowners and get mortgage insurance premium refunds started where applicable.
What’s the difference between the third-party FHA tracers and Immediate System Resources?
For starters, Immediate System Resources operates as a contractor or hired company, working for the FHA to find homeowners the government owes mortgage insurance premium refunds to. The homeowner does not pay for this service–NO FEE WHATSOEVER. The FHA official site reminds FHA mortgage holders, “If someone from Immediate System Resources, Inc. contacts you, they are officially affiliated with HUD and will help you and won’t charge you to get your refund.”
Third party tracer companies may claim they are the only ones able to help get your money if you are due a refund for mortgage insurance premiums for an FHA home loan, but these claims are not true. Third party tracer companies that charge fees, no matter how large or small, are not working with the FHA. These companies are not violating the law (unless they deliberately misrepresent themselves or their work) but they are not the only option a homeowner has to locate and claim a refund.
The official word from the FHA? “Other ‘tracer’ companies are legal. But they do not represent HUD, and they will charge you a fee. You do not have to use a tracer to get your refund, if you are owed one.”
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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