All Forum Posts by: Harry Metzinger

@Nelson Vargas, any update on your closing?

@Amanda A., I am very sorry to hear about your situation.  I will send you the same contacts I sent to Nelson via a direct message.  As you have found, calling the general number and receiving answers is very difficult.  It helps to have a title company with experience working with Sage, as they may have established relationships w/ key personnel at Sage to help push your case forward.

@Percy N., just wanted to say thank you again for the recommended contacts...we closed on Tuesday!  I should have been excited to buy the house but instead I was just relieved that experience was over.

@Nelson Vargas, I am very sorry that you are going through a similar experience.  @Percy N. provided me w/ the name of someone at HUD, and after I contacted him, things really started to speed up. I will shoot you a direct message with more information.

Congratulations @Ashlee Fazio! That is exciting. It is a smart move to visit the property and prepare a detailed repair estimate before submitting the paperwork. Note that the contract needs to be returned to Sage Acquisitions (HUD's asset manager) within 2 business days, and your earnest money deposit (made in certified funds) needs to be delivered to the listing agent (but payable to your title company) within 2 business days as well. The contract paperwork requires signatures from your real estate agent, your real estate agent's broker, and a representative from your title company, so be sure to move quickly to obtain those signatures if the numbers work.

If the repair estimate exceeds numbers that would work for you, you can walk away with no penalty if you have not submitted the earnest money deposit yet.

Looking ahead, prepare yourself that dealing w/ HUD/Sage can be an absolute nightmare. I am working on closing on my first HUD property right now. My closing has been postponed on three separate occasions. Stay on top of your real estate agent and have your real estate agent stay on top of your title company. The biggest issue is Sage's poor customer service and lack of responsiveness, so your people need to be persistent in getting your contract to closing.

Good luck!  Keep us posted!

@Percy N. @Greg H. Well the nightmare continues. I still have not closed on my HUD property. Last Friday, Sage said that they sent proposed HUD-1 changes to my title company last Wednesday. The rep could not tell me the proposed changes, but transferred me to Sage's closing department for details of the HUD-1 changes. No answer. Left voicemail. No call back.

Yesterday I found out the name of my Sage case reviewer and how the HUD-1 changes were communicated...my Sage case reviewer emailed someone at my title company who hasn't worked there in over a year! Sage is special. I submitted the Extension Request on Friday and requested a waiver of the extension fee. I called Sage a second time on Friday and asked for someone in the Extension Request area. Call was transferred. No answer. Left voicemail. No call back. I wait...and wait...and wait. I emailed Sage's extension-specific email address again this morning.

Percy, do you have any better news to report?  Also, I am curious - do you have the full name or email address of someone in Sage's Philadelphia Extension Department?  Once I was able to find out the full name of my case reviewer I successfully guessed her email address.  Amazingly, that particular email was addressed, so sending an email to an actual person at Sage must be the trick.

Hi @Tom Kuhen @Nicole W., I'll chime in w/ my limited experience as I am scheduled to close on a HUD property on Friday.

1. Signed contract is due back to HUD w/in 2 business days of contract acceptance. The challenge here is you need to get original signatures from your real estate agent, your real estate agent's broker, and your title company representative within that time...and then still allow yourself time to mail/drop off the contract. It is a very difficult timeline, but then again, if it's a really good deal and you are committed, you will find a way to make it happen.

2. Earnest money deposit must be dropped off to the office of the listing agent, not Sage. The listing agent for my property said if the check was in his hands w/in 3 business days of contract acceptance, it would have been ok. I didn't take that chance though...he had it in 2 business days. EMD has to be in certified funds.

You are correct that you can walk away penalty-free if you do not submit the contract and EMD. I have done that w/ a couple of other properties.

3. As an investor, you can pretty much kiss away any chance of getting your $1,000 back after submitting the EMD. That's the way the contract reads. There may be some extraordinary reason for getting it back, but as an investor, don't think that a poor inspection report will save you.

4. Cash closings must happen within 30 days, financed transactions must happen with 45 days.  My understanding from talking to other investors is that if you initially state that you plan to pay w/ financing, and then change your mind and switch to cash, you are still allowed 45 days.

The 30 / 45 day clock starts when HUD/Sage signs the contract, not when the offer is accepted. In my case, my offer was accepted on a Wednesday, I turned the contract in on a Friday, HUD/Sage signed the contract the following Tuesday...so my clock started on Tuesday...but I did not actually receive a copy of the executed contract back until that Friday (3 business days after it was actually executed).

5. Before closing, there is a "Yardi P260" portal where your title company needs to upload closing docs. Specific instructions can be found on Sage's website, sageacq.com. Word of advice - communicate all of the information pulled from Sage's website to your title company well in advance. Do not assume that your title company knows all of the steps. I assumed my title company knew the process and I was wrong. Your title company must load all of the requested docs to the portal at least 5 business days in advance. To be safe, I would give them 7 business days...meaning request a closing date that is 7 business days after your title company loads the closing docs into the portal. If you are going to close w/ financing, have everything in order and have your title company prepare the HUD-1 and submit all of the necessary docs by Business Day 30. Why so soon? Because delays are inevitable. This way if HUD/Sage does not review your closing documents in a timely manner (they may not), you still have at least another 5-7 business days to resubmit the closing docs (yes, your title company will need to resubmit the closing docs), allow time for HUD/Sage to review, and still have time to close within the 45 day window.

Please let me know if you have any follow up questions. Happy to help and hopeful that sharing my experience will allow other investors to avoid the emotional ups and downs that I have dealt re: my HUD property over the last month.

Good to know @Greg H. (by the way, when I tag your name, it appears blue in my reply box...but then when I click Post Reply, it fails to appear as if you are tagged for whatever reason).  

I actually got access to Sage's office when I initially dropped off the contract, so it can be done :) I made the mistake of assuming my title company had more experience working w/ HUD than it appears. My real estate brokerage has a relationship w/ this particular title company, which is why I went w/ them...but now am thinking twice about that decision.

I emailed Sage's Extension Department today, spelled out the facts, and asked them if I needed to do anything at this time.  It's one of those Catch-22s where Sage says they need an Extension Request 5 business days in advance, but as of 5 business days before my 45 day deadline, I expected to close within the allowable time.  Hopefully the Extension is a moot point.

The latest update in case anyone is interested... my title company spoke w/ Sage today.  Sage acknowledged receiving the closing docs (they were submitted on Friday, September 9) but stated that they have yet to start their review.  No rush Sage, take your good ole time.  Ahhhhhhh.  Sage indicated to my title agent that the anticipated closing date is this Friday now.  I remain skeptical of closing actually happening on that date.  Stay tuned.

@Greg H., thanks for the advice.  My full-time job is located within walking distance of Sage's Philadelphia office, so I am considering an in-person visit today if my title company does not receive an update.

@Percy N., thanks for the update.  When you filed for an extension, did you request a waiver of the $375 extension fee?  Did you file a separate waiver for each 15 day period beyond your 30/45 day period to close?  Best wishes for a smooth closing next week.

Hi @Percy N., checking to see if you have any new updates? I came across this thread b/c I have great frustration dealing w/ Sage now on a HUD purchase. We were supposed to close on a HUD property last Friday, but then Sage emailed my title company last Wednesday night saying there was insufficient time to review the docs (my title company said they submitted everything requested via Sage's portal 5 business days in advance as requested). Now trying to close this Thursday and we're still in limbo. Called Sage today and they would not confirm anything. The Sage rep kept saying they will communicate directly with my title company. To make matters worse, my 45 day period to close ends Friday. Feel free to chime in @Greg H. w/ advice, as I know you are a wealth of HUD knowledge.