What Is A Tracer?

A Tracer is a Refund Processor. The terms are synonymous. HUD (The Department of Housing and Urban Development) uses the term Tracer. A Tracer is someone who helps locate homeowners who are owed refunds and works with them to get their refund in a timely manner.

Why Does HUD Have A Warning About Tracers?HUD posts a warning on their website to help homeowners who feel like they have been taken advantage of by a Tracer. Sadly, some Tracers have abused this program in the past and not delivered the refunds as promised to the homeowners. Please run an ethical business. This is a service you are providing. Stay in communication with the homeowners you are working with and deliver their refunds in a timely fashion. They are counting on you.

How Do I Get Started?

The first step is to get the list of names from the government. We provide a letter and an address for the HUD office that deals with this program in the Manual on Page 9. If you have your Manual handy, open to page 9 and take a look. If you’d like to order a list online you can do so at: http://www.ntis.gov/products/hud-lists.aspx

Do I Have To Pay More To Get The List Of Names?

Yes. The government is the only one who keeps track of everybody they owe money to. Therefore, they are the only ones able and authorized to sell the lists. The government, at their cost, compiles, prints and ships these lists, which can often hold hundreds of thousands of names and are typically the size of phonebooks. Most of the lists cost $26, though some states such as California, Florida, Texas, New York, and Illinois are more expensive. The reason for that is these states have a high population and more houses on the list.

Who Do I Work For?Yourself. You are an Independent Contractor, working for yourself at your own pace and whatever hours you please. You do not work for GMI Enterprises and you do not work for the government. You can call your business whatever you want (except, of course, GMI Enterprises). All your revenue comes from the homeowners you process refunds for.

How Do I Get Paid?The Refund Processor will always get paid directly from the homeowner. The Authorization Agreement included in the Manual is a legally binding contract that ensures you will get paid. The tracer will always be able to use this, because the only way you know if someone wants to work with you is that you receive a signed and notarized Authorization Agreement in the mail from somebody you sent one to. Some tracers, before they really start the program, think the government pays them. This is not the case. The government is interested in one thing and one thing only: that the homeowner gets their refund. The government doesn’t mind if the homeowner uses a Tracer/Processor to get their refund, but the government makes it a policy NEVER to get involved in a financial agreement between the homeowner and a Refund Processor. This is to cover their legal backside in case of a dispute.

How Can I Make Sure The Homeowner Will Pay Me?

The homeowner has gone through the trouble of not only opening your mailing, but has gotten the Agreement signed and notarized and has put all the wheels in motion. They have made a mental commitment to work with you to get their money. With the Power of Attorney, you can have the refund check sent to you. In this case, you would photocopy the check, send that copy to the homeowner with instructions to send the fee agreed upon in the Authorization Agreement, and wait to get paid. The refund check will be in the your possession but it is ALWAYS made out to the homeowner so you cannot cash it. We recommend making a photocopy of the check and mailing it to the homeowner and request your agreed upon payment. Once you receive payment you send the real check to the homeowner. HUD did change the rules regarding the Power Of Attorney this year so read the Third Party Tracer Procedures file for more information. As long as you follow the instructions listed there, you will be fine.

Why Can’t The Homeowner Get Their Refund Without Me?The fact is, if a homeowner knew how to get their refund, they would have done so already and they wouldn’t be on the list at all. While a homeowner may be alerted to the fact that they have a refund coming after receiving correspondence from you, their efforts to get the refund will be futile because they probably don’t have their FHA Case Number, and even if they do it’s still a colossal pain in the neck (see “HUD A Dud”). You will know the Case Number, but the homeowner will not. By the time they see their Case Number, they will have already signed, notarized, and returned the Agreement, as well as have made a commitment to work with you.

How Do I File Taxes?As an independent contractor, you are responsible for your own taxes. The cost of the Manual from us, the list from the government, and any and all business supplies you buy are all tax deductible. Speak to an accountant for more specifics.

How Do I Know I will Not Duplicate Searching Or Tracing?You don’t know if someone else has contacted the folks you’re trying to contact. Your best bet is to send out as many letters as possible (at least 60 a week) and you are bound to contact someone who wants to work with you. Their are so many people on these lists currently, and they are updated regularly, so there are plenty of individuals who have not yet been reached.