AVOID HUD Closing Delays

January 4, 2017

Key in doorknob

Photo credit: Sky Eckstrom



Top 5 Reasons for HUD Closing Delays

  1. HOA fees, utilities, taxes and any other payment demands are not submitted at least 10 days prior to closing.

The closing agent should send any of the above itemized statements to [email protected] along with the referenced case number.  This will allow Sage ample time to process and/or pay these outstanding bills.


  1. The BSCA and/or selling agent has questions about how to schedule a closing and does not have an “assigned closer”.

A closer is not assigned to a file until 24 hours after a closing package has been uploaded to P260.  If a closing package has not been submitted and a closer has not yet been assigned, please direct questions about closings to our customer service team.


  1. An extension was submitted but the agent has not heard any communication and now the file is about to expire.

Please ensure that all extensions are sent 5 days prior to the contract expiration to allow timely processing of the extension.  A contract extension should be reviewed within one business day.  If you have not received an email stating that your extension has been processed within this time frame, please contact customer service.


  1. (a) The buyer switched financing from conventional to FHA but did not submit a contract amendment.

If a buyer switches from conventional to FHA, please ensure that a contract amendment is submitted and approved by the Asset Manager in a timely manner.

(b) My buyer is ready to close but now the Asset Manager is stating that I have to have a termite and/or LBP inspection if the property is built before 1978.

All FHA cases are required to have a termite inspection and/or a lead base paint inspection if the property is built before 1978.  Termite and/or LBP inspections can delay a closing up to 3  to 4 weeks if the inspection requires treatment.


  1. The BSCA is not able to access the P260 portal and the buyer is ready to close in two days.

The BSCA should confirm their ability to access the P260 portal as soon as the contract is executed and sent over to the closing agent.  If the BSCA confirms that they do not have access upon receiving the file, the BSCA should contact customer service to have their access to the portal activated.  If the activation is not completed, please expect closing delays that could lead to possible extension fees.




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