The Set Up

A Typical Federal Tracer Ad: “A Government related home-based income program has been introduced to the general public. This is a work-at-home opportunity in which you can earn thousands of dollars per month working part time. This program is called The U.S. Government Refund Tracer Program. You will be assisting the Federal Government by processing mortgage refunds. No experience is necessary!”

The Scam

One Tracer Scam charges $39.50 plus $3.50 for S&H. For your fee, you will receive a training manual and instructions on finding HUD refund recipients. You will earn money by contacting these recipients and then charging a fee to obtain the refund for them, a practice which is prohibited by the Federal Government. Furthermore, newcomers to this line of work usually lack access to information needed to succeed in the business. It is illegal for a tracer to tell a homebuyer that a fee is required in order to get a refund.

Cold Hard Truth

It is true that HUD refunds are owed to homebuyers for upfront mortgage insurance fees they paid to the FHA. HUD attempts to contact homeowners who are due refunds through a series of mailings. After two years, HUD is required to release, under the Freedom of Information Act, the names of all homebuyers who have not collected refunds. When tracers obtain names of homebuyers they can target them with phone calls and letters demanding payment in return for information about refunds. HUD and the FTC have taken action against companies and individuals (tracers) that charge fees.

FTC and HUD officials have identified 330 web sites, news group postings, and bulk e-mail messages that made questionable earnings claims, sold Tracer How-To programs or purported to be affiliated with the federal government. They warn all individuals to avoid paying fees for tracer training materials. If you encounter a tracer scam, report it to: http://www.hud.gov/trace.html

The Light at the End of the Tunnel

Request Our Free Scammers List Via Email. This updated list contains current scams to avoid, common tricks and traps and resources to help you avoid being scammed. Better yet, our Scammers List contains the names of websites, companies and individuals who have been busted, shut-down or who have received numerous complaints! Have you been scammed? Report it here.

Bona Fide Work At Home Job Leads

Our jobs are the real deal. No scams. No junk. No fees. Just really terrific - work out of your house and love it - job opportunities that don’t charge fees. Skeptical? Request a free issue of our jobs newsletter and see for yourself. Or, gear up your resume and check out our free job posting area

SOHOJobs Subscribers get access to weekly scam updates and reporting tools in our private forum. If you are a current subscriber, please LOGIN.