Are “third party tracers” legal?
It is true that there are some businesses that “trace” individuals due an FHA refund, then charge the recipient a fee for recovering the refunds. While this is a legal endeavor, it is not a HUD sponsored or endorsed program. HUD does not contract for these services. Anyone can see if they are due an FHA refund and claim it for free.
The Department has stepped up its efforts to locate homeowners who are owed FHA refunds. We have hired Immediate System Resources, Incorporated (ISRI) to find homeowners who are owed money. This will save people the “finders fees” normally collected by third party tracers. If someone from Immediate System Resources, Incorporated (ISRI) contacts you, they are officially affiliated with HUD and will help you and won’t charge you to get your refund. 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. You can read about HUD refunds, right on our home page, including how to get yours.
