If the homeowner paid off the loan early, sold the home or refinanced the loan with a lower non-FHA loan, the mortgage insurance is terminated. Very likely, the homeowner is due a prorated refund of this insurance premium.
By the time HUD/FHA is notified that the insurance is to be terminated, the homeowner likely has moved on. HUD/FHA sends a letter to homeowner informing them of refund eligibility to the last known address and the homeowner never receives the notice.
Currently there are over 120,000 individuals who are owned over $250,000,000 in unclaimed FHA mortgage insurance refunds.
To see if you or a relative have an unclaimed FHA mortgage insurance refund due - CLICK HERE to search HUD's database. This search is FREE.