Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
Has anyone been experiencing unresponsiveness from Sage Acquisitions while trying to close on a HUD property? Sage is the new management company HUD is using in the Philadelphia area.
Our offer was accepted almost 60 days ago and for the past 3 weeks we have been trying to pay them to take possession of the property. Title company submitted HUD-1 for approval to them on 7/5/16 - no response. We got close to the contract closing date so sent them an extension request (did not have to pay to extend, but sent PoF) and they obliged. The following week we tried to close again - but no response yet again. We are on our 3rd attempt to close.
Listing agent says he cannot help (I guess some agents just want a comission for entering data into MLS). Any suggestions? Thinking about making a personal visit to their offices.
Real Estate Agent · Woodbridge, VA · Member since 2015 · 3 posts · 2 votes
9y
I am a buyer currently going through a similar situation. The worst part is, I am purchasing with a VA loan and Sage is required to write a letter because they will not sign the VA Appraisal Addendum. That is literally the only document holding us from closing. We were suppose to close on the 19th of September. To make matters worse, I am deploying on the 16th of October. This was relayed to Sage, however, they are in no rush close our case.
I'm hoping maybe one of you guys could help me. If you have a direct contact, that would be great. I am on my second extension and would love to close before I am gone for 8-10 months.
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
10y
Sage Acquisitions used to be Pemco for the most part and are the sole Asset Manager for HUD in many regions. Has your title company closed many HUD transactions? If so they should have a direct contact . Have you called the Asset Manager at Sage assigned to the property ?
FYI- The listing agent has very little pull as well as direct involvement in the HUD closing process
Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
10y
@Greg H., thanks for your input given your vast experience with HUD.
The title company has done many HUD transactions and we did about 6 last year (not all with the same title company). All the closings were when HUD was using a different asset manager and were either on time or even earlier than the date on the contract.
We did find a phone number which we plan to call today and see if we can schedule closing for tomorrow.
I'm going to hopefully be putting in an offer on a HUD home soon, which in my region (Cleveland, Ohio), is managed by Sage. I was wondering how your process went to-date, and hopefully you were able to close on it by now. I hope to hear from you soon.
Grove City, OH · Member since 2016 · 167 posts · 66 votes
10y
hopefully some people with sage experience will chime in but I've purchased a number of HUDs and it was one of my favorite ways to buy. I have been dreading the management change as things rarely get better. Matt Martin under the old order was great and really fast all things considered but all I have heard about Sage so far has been negative. Slow, unresponsive, clogged, less information. My agent also says they are not clearing things off the books as fast as previous, they are holding things longer trying to get higher bids for what that's worth. Good luck and hope you get some resolve soon.
Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
10y
So...a quick update.
My agent and title company got a message from Sage's "extension processing team" to submit for an extension (number 5) within 2 hours or we might loose the property.
All this while we are still waiting to hear back from them on HUD-1 approval and a closing date, since of-course that is managed by a separate team.
The right hand does not know what the left is doing.
My agent and title company have put in a complaint with the regional director of HUD, not that I expect any miracles.
Rental Property Investor · Marlton, NJ · Member since 2014 · 125 posts · 36 votes
10y
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.
Sage, who used to be Pemco, has always been the hardest to deal with. Now that they are the only Asset Manager it seems they are having more issues. I would consider calling back and asking for the rep that handles the extensions and plead my case with them as they might at least take the time to review the status
Last week my agent, through the owner of their brokerage filed a complaint with the district director, who began to ask questions at Sage. It quickly became clear that there was no communication between different departments at Sage and if one link in the long chain does not follow exact directions, the deal will be stuck in limbo.
Today morning, we got an email from Sage saying they are ready and asked the title company to resubmit the closing docs through their portal (yardi) and requested a closing date of 9/26 (offer was accepted in May).
Rental Property Investor · Marlton, NJ · Member since 2014 · 125 posts · 36 votes
10y
@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.
Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
10y
@Harry Metzinger, yes we requested and were granted an extension fee waiver each time, since we said we (buyer) were ready to close at any time and included Proof of Funds with the request.
Rental Property Investor · Marlton, NJ · Member since 2014 · 125 posts · 36 votes
10y
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.
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.
Hope you get it closed on Friday. FYI- showing up at the office probably won't even get you in the door as every asset manager office I have ever been to you have to be buzzed in as the doors are always locked. You probably now understand why they keep the doors locked !
Since HUD discontinued requiring the use of their title companies several years ago , I have always used one of the old Hud closing companies as I felt they had inside contacts and knew who to contact to get things done. However, as the years have passed and with all the turnover , this is less and less effective
Rental Property Investor · Marlton, NJ · Member since 2014 · 125 posts · 36 votes
10y
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.
Rental Property Investor · Marlton, NJ · Member since 2014 · 125 posts · 36 votes
10y
@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.
Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
10y
@Harry Metzinger, we FINALLY closed yesterday. My title company got the docs from HUD around 12:30pm, I did the pre-close inspection, got a check from my bank and closed by 2:30pm. Wish Sage moved at a similar pace. I will DM you the contacts we tried to leverage at Sage and HUD.
So to recap my situation, the agreement was submitted to HUD along with a deposit to the listing agent on 5/27/16. We received the fully executed agreements from HUD/Sage on 6/6/16. Cash deal, no contingencies and 30 day close.
I had to call the HOA to get the resale cert, organize the U&O, etc. There was some delay in the HOA getting back to me, since there was a large outstanding balance in HOA fees (over $13K).
Once this was submitted to Sage for closing, the Sage delays began. We kept getting the run around and each department has their unique process and they don't seem to communicate internally. There should be ONE person assigned to the case to see it all the way through. As a result, it took 4 or 5 extensions (luckily they waived the fees) and we closed almost 4 months from when we made the offer. After month 2 it messed up our timeline for rehabs and my contractor had to get started on another property.
We used to close HUD deals in 20-30 days, hope we can do the same in the future, otherwise we will need to rethink our strategy around the timeline of HUD property acquisitions.
Real Estate Agent · Woodbridge, VA · Member since 2015 · 3 posts · 2 votes
9y
I am a buyer currently going through a similar situation. The worst part is, I am purchasing with a VA loan and Sage is required to write a letter because they will not sign the VA Appraisal Addendum. That is literally the only document holding us from closing. We were suppose to close on the 19th of September. To make matters worse, I am deploying on the 16th of October. This was relayed to Sage, however, they are in no rush close our case.
I'm hoping maybe one of you guys could help me. If you have a direct contact, that would be great. I am on my second extension and would love to close before I am gone for 8-10 months.
Rental Property Investor · Marlton, NJ · Member since 2014 · 125 posts · 36 votes
9y
@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.
In addition to the contacts Harry sends you, I would look also call the Customer Service center (you may be on hold for 15-20 minutes) and ask someone to see where in the process your file is.
My observation has been that Sage is VERY segmented and relies on specific "email queues" and "file name conventions" to trigger each step of a long process. If the slightest thing goes wrong (i.e. file not named per their spec), you will be stuck. There does not seem to be any automated escalation process in place either, so you need to escalate manually.
Rental Property Investor · Marlton, NJ · Member since 2014 · 125 posts · 36 votes
9y
@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.
Real Estate Agent · Woodbridge, VA · Member since 2015 · 3 posts · 2 votes
9y
I have not closed yet but scheduled to do so tomorrow. I feel similar to Harry in that I am more relieved to close than excited. It was a painful experience, but I did call the contacts that you guys gave me and the letter, I waited over a month for, was written and signed that same day. I am very thankful for each one of your help and BiggerPockets. :)
Let's just hope I actually close tomorrow.
Real Estate Agent · Macomb, MI · Member since 2016 · 2 posts · 0 votes
9y
I'm hoping someone on here can help or advise me on what to do or who I can call. I have an absolute nightmare on my hands. Made offer electronically July 4th, bid accepted next day. First issue was no title or affidavit of affixture as this is a manufactured home. No help at sage or from listing agent whatsoever. Had to file extension 1. Fortunately my title company was able to obtain the title, no thanks to sage. After we have the appraisal we find out there's no tags on the home. So I filed extension 2. Appraiser goes back out to look again and does find tags but they're not where they're supposed to be. This also cost the buyers another 100$ trip fee too. So here I am filing extension 3 and I receive a email back stating since this is not a seller issue we must overnight 375$ to extend the contract. I have never received a call back, email back or any communication, except for when they want money. I have a call into HUD and am waiting to hear back on whee to go from here. I just can't justify having the buyers pay that 375$ fee. How is any of this their fault. Especially since if it weren't for my title company, we probably wouldn't even have a title at this point and would still be at square one. Any help/words of wisdom would be greatly appreciated
@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.