Buying & Selling Real Estate Discussion

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Joe Gemma
  • Investor
  • Rosedale, MD
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HUD/SAGE ACQUISITIONS HEADACHE!

Joe Gemma
  • Investor
  • Rosedale, MD
Posted Oct 25 2017, 10:04

Hi BiggerPockets Community,

I am in the process of trying to close on a HUD property and the last step is to get a past due water utility bill ($700.00) paid. We sent over the past due ledger to SAGE Acquisitions at their request, but the check they cut was inexplicably made payable to the wrong county (Butler, PA instead of Baltimore...) Since this has happened, we have not been able to reach anyone at Sage. They do not respond to emails or phone calls. I am trying to get this resolved ASAP and the title company wont schedule settlement until the payment is sent to the correct party

So this is probably a long shot but I am wondering if anyone has any contacts within Sage Acquisitions that may actually respond to a phone call or email. Any advice/insight in general is also appreciated.

As always, thanks BP

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Tom Gimer
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Tom Gimer
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Replied Oct 26 2017, 06:09

@Joe Gemma Why would that be a pre-closing issue and not an item to be paid at settlement?  Water bills are liens and the responsibility of the seller to clear.

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Joe Gemma
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Joe Gemma
  • Investor
  • Rosedale, MD
Replied Oct 26 2017, 06:20

hey Tim, I'm not sure. This is my first Bank owned deal, but the title co says they will not schedule settlement until they can confirm the seller (SAGE, in this case) has paid the water bill. 

I did get an update late yesterday that it was paid and we are scheduling to settle Monday (fingers crossed) 

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Tom Gimer
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Tom Gimer
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Replied Oct 26 2017, 06:52
Originally posted by @Joe Gemma:

hey Tim, I'm not sure. This is my first Bank owned deal, but the title co says they will not schedule settlement until they can confirm the seller (SAGE, in this case) has paid the water bill. 

I did get an update late yesterday that it was paid and we are scheduling to settle Monday (fingers crossed) 

Where is the property? Make sure you get a final water reading close to settlement and/or escrow for the next big bill. If there was a $700 bill you may have a leak. Trust me, Sage isn't going to be helpful after closing. 

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Joe Gemma
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  • Rosedale, MD
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Joe Gemma
  • Investor
  • Rosedale, MD
Replied Oct 26 2017, 06:58

@Tom Gimer yes, I did get that. The readings look normal to me (no signs of leak). The bulk of that bill is late fees as there hasn't been a payment since 2014. The property is in Baltimore county which sources water from Baltimore City

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Greg H.
  • Broker/Flipper
  • Austin, TX
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Greg H.
  • Broker/Flipper
  • Austin, TX
ModeratorReplied Oct 27 2017, 12:11

@Joe Gemma

I do not have any contacts with Sage in your region but I do have some insight as to how the system works

I am surprised that you indicate that a payment was attempt because that is contrary to how HUD operates. I have never seen or heard of them paying a past due bill prior to closing. The only cases I have been involved in is listing the item on the settlement statement at closing

My guess is the title company you selected does not have much experience closing HUD homes. HUD requires things to be done their way and they are not flexible. The title company putting requirements on HUD(Sage) is not going to speed up the already difficult process

I would ask your title company to allow the bill to be paid at closing. The title company can always deal directly with Sage through the HUD portal which is called P260. No phone calls and such are needed and this avenue is the only way Sage/Hud communicates on a consistent basis