Overpaying for mortgage insurance? You may have money waiting to be claimed – NBC 5 Dallas-Fort Worth
The US Department of Housing and Urban Development has millions of dollars for thousands of Texans who overpaid their mortgage insurance.
NBC 5 Responds helped track down at least one North Texan who was owed money.
‘IT WAS A HAPPY LITTLE MOMENT’
It only took Wendy Young seconds to find over $1,700 of her money.
“It was a happy little time there,” Young said. “It ended up being, in total, the amount of a mortgage payment for me, a monthly mortgage payment.”
Young said she contacted HUD, filed a reimbursement request and recently received an email update that the agency was processing her request.
UNPAID CASES IN FIGURES
Young is just one of the Texas homeowners who didn’t know she owed a refund for overpaying mortgage insurance when she took out an FHA loan on her home.
Federally guaranteed loans come with a requirement to purchase mortgage insurance and some homeowners may have paid premiums up front.
According to HUD, as of early 2022, there were 53,722 unpaid cases in Texas totaling well over $18 million.
Nationally, HUD said it had 788,650 unpaid cases worth just over $401 million.
Some unpaid cases date back decades.
Our colleagues at NBC 5 Responds in Chicago tracked down the Magana family, who owed more than $4,000 for insurance premiums they overpaid on an FHA loan from the late 1980s.
HOW TO KNOW IF YOU HAVE UNCLAIMED MONEY
HUD said it was trying to contact the owners and its goal was to get in touch with anyone who owed money.
HUD also explained that most homeowners who have or had an FHA-insured mortgage are not eligible for a refund unless they paid an initial mortgage insurance premium at a closing. loan after September 1, 1983. HUD has stated that there are other limited circumstances that may meet reimbursement eligibility criteria.
Here’s how you can check.
- Start with the HUD searchable webpage.
- Type your name, city, and state.
- Check current and past addresses where you have owned homes.
If you still have your old documents, you can look up an FHA filing number and search that way as well. The case number would have three digits, a dash, and then seven more digits.
If you get a result, your next step is to call HUD at 1-800-697-6967. When we called, a recording asked us to select a language and then someone picked up within seconds.
The agency said it then sends a request for reimbursement.
HUD said if you think you’re owed a refund, but haven’t seen your name in the online database, the agency wants you to call them.
Homeowners can search HUD’s list and complete the refund application for free. You don’t have to pay anyone to do it for you.
“Go ahead, look at the HUD website and just check it out. You never know,” Young said.
NBC 5 Responds is committed to finding your concerns and getting your money back. Our goal is to provide you with answers and, where possible, solutions and resolution. Call us at 844-5RESPND (844-573-7763) or fill out our customer complaint form.