Beware of people offering to get you a mortgage insurance refund at a cost. The truth is, you can get the exact refund for free. News On 6 crime reporter Lori Fullbright reports when many people buy a house, they pay mortgage insurance up front. When you sell the house, you are entitled to get that money back.
Letters are circulating right now and offer to help you get that money, all they want in return is a 10% cut.
Charla Atchley first received the letter a few months ago. It says she's owed a refund of $640.95 from mortgage insurance from a house sold in 2003.
The letter seems to say they'll get her the refund in 14 to 21 days, if she'll just send them 10% or $64.
She ignored it until she received a second letter. A little research told her it was not worth the $64.
"I didn't actually send money, but others had and all they got back was information on how to get the refund they're due," said Atchley. "No refund, just information. You're paying for information you can actually get for free."
That's right, just go to the website of the Department of Housing and Urban Development and search by your last name.
Atchley put in her name and there was their refund of $640.95. All she had to do was fill out a form, get it notarized and mail it in and she'll receive the refund in a few months, all for free.
The site even has this warning on it about these people wanting your money.
"This is a good tip for consumers who might quickly write a check for a little money to get a lot of money, especially in these days of the gas crunch and prices going up," said Atchley.
In fact, Atchley had a relative who was anxious to send in a check to get the $600 refund, until Atchley checked with the Better Business Bureau and found the company sending out the letter, American Data Services has an unsatisfactory record due to a pattern of complaints.
If you get one of the letters, just toss it.
It's not illegal but, if you've sold a house in the past six years that had mortgage insurance, go to the website and search for yourself to see if you have a refund coming.