Agencies Warn of FHA Insurance Scam
Authorities are warning consumers to beware of tracers people or
companies who send letters or Internet e-mails to consumers offering to help recover money
from the Federal Housing Administration (FHA) for a hefty fee.
The U.S. Department of Housing and Urban Development (HUD)
is looking for 100,000 homeowners owed $70 million in FHA insurance refunds. However, HUD
and the Federal Trade Commission (FTC) are cracking down on tracers who falsely claim an
affiliation with the government and offer to collect refunds for a fee. You
dont need to hire someone to collect your money, says HUD spokesman Victor
Lambert. You can obtain your refund directly from HUD for free.
To find out if youre eligible for an FHA refund, call toll-free at 800-697-6967,
write to HUD at P.O. Box 23699, Washington, DC 20026-3699, or search HUDs Internet
Also contact HUD or the FTC if you think youve been
victimized by a tracer. The agencies say its permissible for tracers to be paid a
fee for their service, but its illegal to tell a homeowner he or she must pay the
tracer a fee to get a refund.