Why Is the Money Available ?
Each borrower of HUD/FHA mortgage is charged an upfront Mortgage Insurance Premium (MIP) plus another 1/2 percent every month on the money they borrower for the duration of the loan. This money becomes available for refund to the borrower when they terminate the note in good faith via re-financing or paying off the mortgage from a property sale or early pre-payment. Based on the actual life of the original mortgage, FHA will refund a pro-rata share of the unearned mortgage insurance premium back to the original borrower. However, this refund then sits in a non-interest bearing account, until the original borrower files a claim for a refund. In many cases, these refunds just sits there for many years unclaimed by the borrower.
How to Apply for a Refund ?
Because of the US Government bureaucratic procedures and red tape, most homeowners have no idea where to begin to file for an FHA mortgage insurance premium refund, and in most cases, are not informed by their Realtor or mortgage professional that a refund is due them. The Mortgage Professionals at Pacific Capital Investments, Inc., have over 20 years of combined mortgage industry experience, and are skillful and knowledgeable as "Third Party Processors" in tracking down mortgage borrowers to assist them in recovering their refunds from the US Government. At Pacific Capital, we work on a contingency fee basis, where the success fee is only charged as earned, after the successful recovery of the FHA premium refund. We do not charge up-front fees and our fees are only due and payable after the homeowner receives their refund from HUD.
