[Note from Joe 7/17/08: If you read the discussion in the comments section below, you’ll see that Darlene was at one time offering her book for free. She is no longer doing so. Visit her at http://www.scmiprefunds.com/shop/ to purchase it.]
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How I Learned about Mortgage Refund Processing
I first heard about mortgage refund processing by reading a job ad on Craigslist. Can you really make money as a refund tracer? By getting refunds for people who paid too much for their mortgage insurance? Hey, I’m a helping kinda gal, and if I could make some money by helping, well that would be just as cool as helping people without getting paid. Maybe cooler!
I wrote to the email address listed and received a reply with more information. The reply said that I could become a third party tracer and would have to pay for software, lists, and a manual, and to visit eaglesoftwareservices.com to learn more. Uh-oh. Of course, that’s not a “job” at all because real jobs don’t charge you to work. I felt a little deceived, but was intrigued enough to click the link.
It led me to a presell page that told me a little bit more, but was really just trying to sell me the software, which costs $39.95. The web site left out some important details, though, that were in the email:
- It doesn’t say that I would need to buy lists of names and refunds for at least $20 per state.
- It doesn’t say that I would need to buy a manual of instructions to learn exactly how to get people their refunds and get paid.
How is Mortgage Refund Processing Supposed to Work?
I had no idea what mortgage refund processing was until starting on this path. So for those of you who are also wondering, here’s a quick introduction. If you take out a mortgage without a down payment, you are required to buy mortgage insurance so the lender still makes its money back in case of default. The insurance premiums are tacked on to your monthly mortgage payment. When the home is sold or refinanced, you may be eligible for a refund of some of your premiums if your loan was through HUD or FHA.
The problem is that people move and HUD/FHA loses track of them, so they don’t know they have a refund coming. That’s where tracers come in. Tracers (which is what I would be) find those people, let them know they have money coming, help them collect it, and keep part of the money as a fee.
My Experience
So I contacted the guys at I’ve Tried That and became a Secret Agent. They bought the software, I downloaded it, and am here to report the full results to you.
-
It’s not “software.” The product you get for $39.95 is actually something like an e-book designed to be user friendly, with buttons to click through. It’s like a help file. Here’s the definition of software: “The programs, programming languages, and data that direct the operations of a computer system.” Word processing programs and Internet browsers are examples of software. This e-book is not.
- buy hud lists (at a minimum of $20 per state)
- make contact with claimant (no instructions on how to do this, no letter samples)
- agree with claimant that you will be his or her tracer, sign contract (template of contract provided)
- process applications for contract (one template provided)
- get paid/collect your money (no instructions on how to do this)
- You will be competing with HUD-sponsored tracers who will do what you do for free.
- You will have to hide the source of the money from your potential client, or he’ll just go directly to HUD himself and get his money without you.
- Those owed refunds can do it without you—you’re not necessary.
- It only works if your client doesn’t know who owes him money.
- You will have to spend some money to get started. Maybe a lot of it.
What’s in it? The ebook is basically about 4-6 pages long repeating everything that is already stated on the website with a few more procedures, a contract template, and a HUD application template. That’s it!
Here’s what the “software” tells you to do:
The e-book does not mention how you can contact your client, but when you get to the end of the e-book, you get an offer to purchase the manual for only $24.99 in which all these instructions will be given to you. Hello! What was the $39.99 for? Junk. The manual is not even sold through eaglesoftwareservices. You must contact another company or send Eagle a money order so they can place the order for you. (Yeah, right. I’m all over that). The manual is available all over the ‘Net for free. If you want to see it, let me know in the comments and I’ll send you a link.
Not Just Eagle Software Services
Upon further research, I found that several other websites are offering the manual up front, such as americanrefundservices.com. They sell the manual for $49.95 and their “startup kit” for $16.95. Which I think is what eagle sold us—a start up kit. Other companies are selling the entire kit for $79.99.
In Search of a Cheaper Manual
On eBay I found two people selling manuals. For one, the bid starts at $2 and the other has a Buy-it-Now price of $14. Then I actually found the text of the manual online, but it is missing one valuable piece of information: how to get paid. I figured out that you have to somehow collect the money yourself, but I went to another website in which they talk about another method of getting paid by having the refund check sent directly to the tracer, but they are selling their info for $49.99. The manual is available for free at geocities.com/freeebooksus/hudbook.html. I downloaded the info and made it into a PDF file.
The Bottom Line
Can you make money as a mortgage refund processor? Maybe. It’s legal, but there are big hurdles you should know about:
As far as Eaglesoftwareservices goes, this is not a good buy, in my opinion. Everything in the e-book is already stated on their website, except that the sales page “forgets” to mention that you must buy the HUD lists and that you need a manual with the more detailed instructions. Plus, Eagle’s “software” is just another marketing strategy because when you get to end of the e-book they make you offers on other products you can purchase. Oh, and the e-book also comes with re-sell rights, which means that you can build your own website and resell this book yourself. I suspect that’s how Eagle came across it. They are just reselling the e-book because they don’t even have the manual themselves.
Eagle advertises “bonus material” that comes with your purchase. What a waste! It’s just another e-book showing you how to start your own mail order business. When you get to the end of this one, you get an offer to buy another e-book/software to teach you to make your very own software to sell ebooks. And you get more offers, more offers, more offers.
I believe there is money to be made here, but Eagle’s product is not worth buying. Money Wasted. Stay posted, though, because I am going to dig through the manual and try to make contact with clients and see what happens.
Signed,
Da Fanster
(this post will self-destruct in 15 seconds. No, really: it will!)
Could i please have that information too?I like the idea of building relationships as a way of building business.Me doing this work could really help my family get through difficult time we’re having right now.Thank you so much for offering help!
Edgar
Hi… Would you please add me to the list of people you are sending your book to?
I’ve lost a lot of business lately in my sales job due to the economy and need to supplement my income badly.
Please accept my gratitude in advance.
My Email: jercarbra@yahoo.com
I’m interested in the tracer program please send me the info on the book on how to get started. Your web site is great and I’ve gotten allot from it.
Hi I would love the info too. It is very kind of you to off it. I am a homeschooling mom of 3 and I’m starting to feel the (financial) burn after being off work more than a year. My email is SOULSWEEP@OurCertainWay.com
Also please let me know how I can send you a donation
Warmly,
Soulsweep
OurCertainWay.com
Thank you for being one who will share information. I was looking into this years ago before it got easier with the computer and all and thought it was a good idea, but just didn’t want the hassles that went along with it (postage costs, research, etc.). Now with the computer, I am sure it will be more streamlined and lucrative. I, like, you understand that you can’t process everyone on the list, so why not share. Thanks a bunch. I will be awaiting arrival of your information at wakeshfoundation@yahoo.com Have a great day today and everyday.
Corri, CA
Darlene,
Could I get a get a copy of your booklet too? Thanks in advance for sharing this information.
My e-mail: drbr77@yahoo.com
Hello Fanster, by going live i meant when i actually start selling it, which i’m very close to doing.
Hi Everyone,
Good thing I found this blog BEFORE I decided to contact Eagle Software Services to purchase their “manual”.
Darlene can you send me your write up? I would like to see how you became successful in doing this service. My email: imua7@hawaii.rr.com
Hi, I am currently waiting on my package that I paid $89.99 for, I’m hoping that it is worth it. However, I am a little skeptical and would like to read your manual. So its not a gimmic? or is it? Please email me… bjandtommybailey [at] yahoo [dot] com
Hi Darlene,
Could you also send me information about being a tracer. Sounds very interesting. My email is julieblm24@yahoo.com. Looking forward to reading it. Thanks in advance.
Darlene, what do you mean up to the point of going live?
You’re right though? The manual I found is oldddddd!! and your info is great and up to date. No beating around the bush with it. A million thanks to you for taking the time to do this for all of us. Im sure everyone appreciates it. Major Kuddossss.
Fanster, look closely at what you get for free through that link you sent Darren. As i said earlier, the information being sold online today is from 1983 – the information in this particular ebook has not changed for over 20 years (evident by the incorrect form number for the Refund Application, which is actually Form HUD 27050-B; and in today’s busy lifestyles, who has time to spend at the library to locate people?) Sure, they tell you what to do but they don’t tell you exactly how to do it. I think everyone here will agree that they will pay for good, accurate and up-to-date information and a more streamlined process that will benefit both their clients and themselves. My process uses two forms (TFC and Application) and i get paid upfront all the time. Which would you prefer?
Also, i believe you misunderstood, my information is free up to the point of going ‘live’. I already sent Darren the info, for free.
– Debra, i don’t think you gave me your email address to send the info.
Hey Debra, you’re welcome… Im glad that this post is helping alot of people. I have lost money online buying products trying to work online from home, not to mentioned being scammed. Im glad that IveTriedthat and I have been able to help.
Darlene, don’t charge for your product…. It is great and the info is free online anyways..
Darren, send me your e-mail address and I will send you the link to a free manual online.. actually let me post that here.. It should have been included in the article above.. here is the link… http://www.geocities.com/freeebooksus/hudbook.html
Now, this is not my personal link. I was able to find this link while I was a Secret Agent.
Hi, just letting everyone know that i’m no longer offering the training manual for free. I’m currently working on a version 2 and hope to start marketing and distributing it for sale shortly. Have not decided on prices yet, still. Everyone who has received version 1 will continue to get free support and updates.
Thanks.
Darlene
Darlene,
would you please email a copy of your booklet on tracer refund program. My email is pcolacap@yahoo.com
Thank,
Darren
Hello Fanny-
Thank you for all the research you did on this – saved me lots of time and at least a few bucks from the sounds of things.
Has anyone else started following Darlene’s program? I am very interested in making some legitimate extra money!!!
Thanks, again-
Debra
Hi Darlene,
Would you please send me a copy of your prepared document. It seens to me that it would be very helpful. ozuna.reda@gmail.com
Thank you.
Eddie and Priscilla, Monique, Edith and Louis, you should receive the information shortly. Let me know of any questions, thanks.
D.
Darlene,
I’ve read your latest posts on the blog (https://ivetriedthat.com/2008/03/19/can-you-make-money-processing-refunds-for-hud/). I’ve been inquiring into the HUD/tracer business for awhile but have read contradictory accounts on the actual HUD lists of homeowners who have potential MMI checks coming to them. From most of the websites I’ve come across these lists are for sale by state, but I haven’t come across any that offer them for free. If they really are public information, and if you know a way to access the names from the HUD database, I would appreciate it greatly if you would respond with some tips. Thanks and much obliged…
Louis S.
alias1937@aol.com
Hi everyone, over the weekend I will get up to speed on my emails and sent the instructions out to those who hasn’t received it yet. Sorry for the late response.
Hey Darlene, my e-mail is edithw47[at]aol[dot]com send to me too… I cant wait..
Darlene,
Thank you so much for your document. It is very clear and concise. I think this will really work for me since my mom owns an insurance office and I can have the people meet me at her work place so they know it is not a scam. Most of her customer base is non-english speaking hispanics so I would translate the documents you kindly shared with us and even try to do calling more than mailing cards since that is how it works better with the hispanic community. I will keep you posted on how I do. Thank you very very much
Erika
Hi Darlene,
After finding the job posting on craigslist.com and doing a little homework myself, I would also like to review your document too.
Thank you. 1difference[at]live[dot]com
Darlene,
My wife and I have been looking for a home based business to supplement my pay. She’s a stay at home mom. The last eight years, we have been bless to be able to keep her at home with our kids. With the economy the way it is, it’s getting tougher to do this without help. We would like to keep her at home with our kids. This is the answer to our prayers. Please send us a copy of the handbook. May God bless you for helping out so many. Our email is edpris5[at]peoplepc[dot]com. Thank you again.
Sending to you now, Erika, no problem.
Hi Darlene,
Could I get you handbook too? I am a stay home mom wanting to start a home based business and i’ve looking all over the net to try to find info about these refunds. So you are the answer to all my questions…Thankyou very much. erikaparker2001@yahoo.com
Fanster, the purpose of my writing/sharing my information was for everyone to forget about what they’ve previously heard/read/seen elsewhere and to finally start learning how to do this business in the most efficient manner that’s beneficial to both you and your client. All of the info ‘packets’/’booklets’ sold online are archaic(sp), 1980’s info and all it is is a photocopy of another photocopy of the original manual. Whatever you bought online just flush it down, chalk it up to lessons learned and call it a day.
You said:…that the tracer receives the HUD refund check, they take it to the bank, cash it and send the client the difference of whatever the fee being charged is. How is this done? Is it done by power of attorney because I think that would be an even more effective way of collecting the payment, don’t you think?
Fanster, yes, with a POA HUD can and will mail the refund check to the Tracer but HUD never did and will not ever print the Tracer’s name on the refund check therefore no Tracer is ever allowed to cash refund checks. My document shows you how to get paid before the refund check comes, without a POA. Remember one thing, this is your business so you tell the client how you will get paid, not the other way around.
Is the POA a more effective way of collecting payment? No way! The MOST effective way to ensure payment is to build trust with the client beginning the very first moment you speak with them. You meet with them and let them shake your hand and get to know the person they’re giving money to, to help them. You build friendships and relationships along the way. Sit for awhile and have another cup of coffee, even if you don’t want to. THIS is the MOST effective way to ensure payment. I’ve never used a POA because it’s an unnecessary, added step in the process. What you want to do is shorten the time period from the moment you speak with them to getting the first partial payment. When you’re with your client, nothing and nobody else matters meaning the cell phone is turned off and you have nowhere else to be except with them for as long as they’ll have you. Why? Because the more time you spend with them, the sooner you get paid.
You said…Also, you can always tell your client that they don’t pay you anything until their refund arrives, since like you mention on your file some fees may be too steep for elderly people. I am just wondering how is it that some tracers cash the checks if they are not under their names???
Fanster, yes with certain clients you can allow them to pay you once their refund comes in, and to take that further, you can help them for no fee at all. If a refund is not going to get me at least $10, often times I will assist them for free because of the referrals I will get later. But also, on the other side of that, in some cases the clients will pay the total fee upfront regardless of the amount so it evens out.
You don’t want to get into the habit of telling all of your clients that they can pay you later because the average processing time for them to receive their refund check is 120 days AFTER HUD receives the application. Figure on a total of 10 – 12 weeks from start to finish before they receive the check.
Save yourself alot of time and heartache and just follow my document word for word and you’ll get paid upfront every time, either partial or full. No POA required.
Wow, great job Darlene. Your information is really helpful. I have a question though and maybe you or someone else can aswer it. I read on another website, I dont have it handy with me right now that the tracer receives the HUD refund check, they take it to the bank, cash it and send the client the difference of whatever the fee being charged is. How is this done? Is it done by power of attorney because I think that would be an even more effective way of collecting the payment, don’t you think? Also, you can always tell your client that they don’t pay you anything until their refund arrives, since like you mention on your file some fees may be too steep for elderly people. I am just wondering how is it that some tracers cash the checks if they are not under their names???
Fanster, I’ll send to you right now. E. Mosher, pls send me your email address either here or to rodriguesd799@yahoo.com.
Hey Darlene, my e-mail is fanlozano@hotmail.com.. pls send to me too… I cant wait..
I would like to receive Darlene’s email. I have been considering starting this type of business also and would love to incorporate her experience.
… The email will come from mystiquemuzil@hotmail.com (my MSN email address), don’t be alarmed. ;-)
Hi, everyone should receive an email invite to view the document at my MS Office Live Workspace. Good luck with the business and let me know how you’re progressing. Ask questions anytime.
Hi, the finished document is 3.72 mb as a zipped file and still too large to email. I’m trying to find another way to get it to everyone. .pdf-ing it right now.
Thanks, Darlene! My email is joe[at]ivetriedthat[dot]com.
Hi, i’ve finished the write-up, it’s 39 pages. Right now i’m checking the internal and external links to make sure they all work as they’re supposed to and i will try my best to get this out to everyone asap!
28 pages now… not even close to finishing. I’ll keep you posted.
Just to give everyone a status, i’ve begun the write-up and it’s 12 pages so far. What I’m attempting to do is make it very interactive with screen shots and hyperlinks pointing to points of interest both within the document and out to various websites, while giving you just the absolute bare minimum and facts needed to understand the entire process, omitting the fluff. Everything/anything that you will need to know when speaking with your client is colored green. Everything/anything that you will need to know/remember/have to do this business is colored orange. I will get it out to everyone as promised at some point tomorrow (Saturday). Thx.
Got it Darlene, will be waiting, again, thanks for sharing!
Toni, i’ve emailed you a response. Joe, pls send me your email address, thanks, but no rush.
D.
Yay!!!!!. Thanks Darlene.. please do send us that Info as I want to get started on this..
That’s a generous offer, Darlene. I’ll be interested in seeing your written instructions when you’re finished.
Toni, I suggest you follow Darlene’s instructions in the comments above. Check out her website, and then contact her with specific questions at the email address she listed. Good luck.
Please email me all the info on how to get started. I am retired and want something to start from home for extra income. I am so glad I found this online and not get mixed up in some type of scam! Hope to hear from you soon, THANKS for sharing. Toni
Fanster, i charge 20%. When they call me, i mention to them my fee and how i collect which is 10% BEFORE i mail the TFC out to HUD and 10% BEFORE i mail the application out to HUD.
My advice to everyone is to start locally in your own hometown where you can actually meet the clients and build trust. I meet with all my local clients either in their home or at my home office, (after my 9 – 5 and on weekends), meaning i don’t mail the TFC to anyone. You have to build relationships for this business to work. And they already know that when they sign that TFC and before i mail it in, they have to pay me 10%. Of course that’s at your discretion, like, with elderly people i won’t have them pay me right away and/or with low amounts i will assist them for absolutely no fee at all. I DO chase everyone regardless if the amount is .01 or 1000. The key words here are R&R: relationships and referrals which leads to what? All together now… rest & relaxation and after you build up, RETIREMENT.
The beauty of this business is, you run it as you see fit. YOU tell the clients how you will do business with them. For example, i set up am 888 number. All calls get forwarded to me BUT, because i am currently working a 9 – 5 and doing this part time, i don’t answer the phone. I have all the calls go into my voice mail which gives me time to research the info then get back to them. Anyone who doesn’t leave a message, i don’t waste time returning the call.
Beginning May 1st, i’m going full-time, nationwide, with a rented office space for clients to meet with me and i’m no longer going to their homes. Also incorporating PayPal for non-local clients.
Over the weekend i’ll write out step by step instructions from start to finish and email them to anyone who wants it. Email me at rodriguesd799@yahoo.com and i’ll happily send it to you/AJ/Sylvia or anyone else.
BUT PLEASE, don’t purchase anything to learn how to do this business because everything you need is public information and free! Tadaaaaaaaaa. If you search long and hard, you’ll see that my website is the only website of someone who’s actually DOING the business. Give me a shout, later kids.
Darlene
Darlene,
I was very glad I found out about eaglesoftwareservices.com ahead of time. One of the things that clicked with me right off was there wasn’t a real person I could talk to nor an actual detail of how the whole thing works. I checked out your site and it was very upfront. A nice read.
How do you collect your fee, Darlene? Can you please give us some insight as to how you do that?
Thanks,
Fanster
Actually, this Tracer business is very real. I’ve been doing it part-time for the past seven years and this May i’ll be doing it full-time. Check out my website, then email me and i’ll be happy to tell you how i set up getting paid, locating property owners, getting the names from the HUD database for free (it’s all public info), everything.
I work with property owners nationwide but because the HUD database is updated monthly, there’s more than enough to go around for everyone.
Take care,
Darlene Martin
http://www.scmiprefunds.com
888-843-6484
The manual is available all over the ‘Net for free. If you want to see it, let me know in the comments and I’ll send you a link.
Please forward the link. I am really interested in this program only I am like you and have received and reviewed a lot of bogas information.
Thanks,
AJ
Good detective work! I love this blog. This is the real info that people need to be aware of.