In Arizona Real Estate, there is this document called a Cure Notice. An agent giving another agent a Cure Notice is a serious insult. It is ugly document and only provided when one party loses faith the other party will perform, or conversely, the other party has repeatedly not performed. They are not given out lightly, and pretty much tell the other side "you are a bunch of damn clowns" and give the right to cancel a transaction. To sum it up, a Cure Notice is akin to the Wild West's fight'n words that starts a shootout on Main Street.
The issuer of the Cure Notice gives the other side three calendar days to get their affairs in order or the other side cancels. The buyer's earnest money either goes back to the buyer (if it is the buyer who has issued the notice) or it goes to the seller if it is the seller who has told the buyer to perform or go away.
There is only ONE time in all my years of real estate that I have issued a cure notice as the seller and won the buyer's earnest money. It still makes me ill to think of the poor sellers who lost their money because their agent was an idiot. The sellers deserved better.
In my entire career, I have issued three cure notices. Basically, if a cure notice is being issued, it means all other means of negotiation have been exhausted. It also means that the patient side is tired of waiting for the other party to get their act together.
I am expecting a Cure Notice tomorrow. It makes me ill to know this is probably coming. But the fact is, my clients--the Veteran's--have not performed through no fault of their own. I have mentioned this to my loan officer of 12 years, who doesn't seem to completely grasp the gravity of the situation. Instead, I am hearing "well... we should be done soon." SOON IS NOT SOON ENOUGH. My folks stand to loose $5,000 and would be homeless.
If I were the selling side, I guarantee I would be issuing one. I shared my concerns with the title company today (with the idea, maybe she can put a good word in for us). She agreed. Yep, a Cure Notice is coming.
Because I have been expecting this, I have been constantly communicating with the selling side. I have disclosed every detail of what I know--even if it contradicts past communication. I have cc'd the selling agent on e-mails to the loan officer. I have asked the loan officer--while cc'ing the selling agents--for updates. Essentially, I have kept the selling side in the loop with the hope of holding off a Cure Notice.
Tomorrow is the day when a Cure Notice can officially be issued. It means that the selling side can void the transaction if my buyers do not perform in three days. Three days from now will be a holiday. And I am told there is no way this sale will be done prior to three days from now. Of course, that also means that the sellers can't cancel the transaction until the following Monday. My hope is that by Monday, there will be enough movement in this sale that I can convince the selling side to hold off just a little bit longer--like a day or two. After all, it would take a day or two for the buyers to move out of the seller's home (remember, the buyers have prepossession) and the sellers to clean up and make the show ready. Isn't it better to wait just a teensy bit longer? Of course, this negotiation will probably require an agreement by the buyers to put down more money.
Though I am expecting a Cure Notice I have not mentioned this to the buyers. There is nothing they can do at this point. And we haven't received one--I am just expecting one. My game plan is in place if one comes in. And it goes like this: "Please change your mind. I have no idea why my loan officer has dropped the ball. But we are thisclose. Just another couple of days? Please?" So yes, essentially, my entire plan boils down to this: I am going to beg for mercy.
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