Mortgage Insurance Refund for FHA Loan - Posted by Tom Trafton


#1

Posted by Lee on December 16, 1998 at 19:32:35:

Acording to the Book “Everything about Home Loans”
(ISBN 0-9836189-8-9)($20.00 + or -)
Author, Darryl Beasley
(a highly successfull brokerage agency owner in my city)
says… after month number 84 there is no (MIP)Mutual
(Mortgage) Insurance Premium refund due.

The book (I think)is a must read for anyone that is in
the Real Estate industry.


#2

Mortgage Insurance Refund for FHA Loan - Posted by Tom Trafton

Posted by Tom Trafton on December 16, 1998 at 18:19:16:

Back in Sept. I purchased a property that I immediately put
on a L/O. The loan was a FHA non-qualifying loan that was originated on 4-9-89. I am the third person who has assumed this loan. The loan has never been refinanced. My question is when my buyer follows through and purchases the property and this loan is cashed out, will I be intitled to any mortgage insurance refund since I will be the
legal owner at the time of the closing?
If this is the case then what procedures do I need to do to receive the refund after the property is sold?
Thanks for any help that anyone may have.
HAPPY HOLIDAYS TO ALL!!!


#3

Re: Mortgage Insurance Refund for FHA Loan - Posted by Dave T

Posted by Dave T on December 17, 1998 at 18:17:28:

I may be wrong, but I am under the impression that at the time your FHA loan was originated, the mortgage insurance was paid in either a monthly or an annual premium. There is no accumulated “cash value” in the mortgage insurance to be refunded, nor was there an initial lump sum deposit made from which insurance premium withdrawals are made.

If this impression is true, then you may have nnothing to be refunded.


#4

Re: Mortgage Insurance Refund for FHA Loan - Posted by Joey P

Posted by Joey P on December 17, 1998 at 24:10:57:

Tom,
Unsure about this, but from what I have heard about these situaions, you need to get the HUD customer service number and call them. It is my understanding that if the principle on the note is down below 80%, then you are entitled to the refund (assuming of course that it has not already been claimed.) Once again, I am not sure about any of this. Hope this helps.

Joey P


#5

Re: Mortgage Insurance Refund for FHA Loan - Posted by Lee

Posted by Lee on December 16, 1998 at 19:32:49:

Acording to the Book “Everything about Home Loans”
(ISBN 0-9836189-8-9)($20.00 + or -)
Author, Darryl Beasley
(a highly successfull brokerage agency owner in my city)
says… after month number 84 there is no (MIP)Mutual
(Mortgage) Insurance Premium refund due.

The book (I think)is a must read for anyone that is in
the Real Estate industry.