WF - fiduciary responsibility to THEM!! - Forum

There was a great discussion here last week regarding the lawyer out of New York who said the FBI was looking into fraud cases where the agent didn't present the highest offer (of course I still haven't seen the base of that article), but I agreed with the majority on this site who said the fiduciary responsibility was with the SELLER not the LENDER, which got me to pull out my handy dandy Wells Fargo short sale addendum which states:

2.It is the Brokers’ fiduciary responsibility to present the highest and best offer to the servicer.

Again, I view this exactly the same way. My responsibilty is to the SELLER, NOT to WF. They seem to LOVE to scare everyone.

4. Should there be a conflict between the Purchase Contract and this Addendum, the Addendum shall govern.

5 Failure to comply with any of the above conditions or acts of misrepresentation could result in

the servicer pursuing any and all available legal remedies

Exactly WHAT legal remedies is WF going to pursue? What LAW am I breaking if I say my fiduciary responsibility is to the seller and not the lender? Wells Fargo is NOT PARTY to the contract. My contract is between my buyer and seller, NOT my buyer my seller and WF. How can they say the addendum shall govern when they aren't part of the contract to begin with? The more I think of all of this, it's absurd.

Replies

Smitty March 28, 2011 at 8:35am

Interesting. So all these addendums the lenders have us sign are worthless? LOL..They aren't party to the contract.
Jeff Payne March 28, 2011 at 8:07am

agreed! Just because they think they can does not mean they can legally
Victoria Frieberg March 28, 2011 at 7:37am

I get that, but they also demand the addendum..just thinking that if push ever came to shove, not only do we owe them no fiduciary duty, but they cannot use this addendum to prove that they have a contract with the seller and agent subjigating themselves to WF..as it would likely be scrapped due to State law
Jeff Payne March 28, 2011 at 7:33am

Victoria, Unless WF actually hires us, we owe no duty to them, our duty is to the seller
Victoria Frieberg March 28, 2011 at 7:27am

interesting..would have to assume that the addendum is not valid if it is in conflict with the States statutes..
Jeff Payne March 28, 2011 at 7:25am

Smitty, my good friends who do a TON of short sales taught me to NOT let the bank teach me how to do the short sale. Too many agents let the negotiator walk them through the short sale only to have it get rejected. I prefer to walk the negotiator throught the short sale so that we get it approved
Smitty March 28, 2011 at 4:37am

OMG. Too funny. Yes you're right.

It's too bad because I think agents that aren't that familiar with short sales would get nervous around this stuff. I have half a mind just to cross that section out and initial where it says "servicer" and put in seller....LOL

I wonder if that would nail the coffin on any approval I may get.
Jeff Payne March 28, 2011 at 3:15am

Wouldn't the highest and best offer be the decision of the seller? Your seller decided that the offer that they accepted was highest and best, period. Just because WF or any other bank says something is true doesn't mean its true. WF would pee on your head and tell you it is raining :)

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