Real estate deal signed after foreclosure mediation is a deal, Supreme Court says

The Nevada Supreme Court on Thursday added teeth to the state's Foreclosure Mediation Program by ruling that a deal signed after a foreclosure mediation session could be enforced even if there were shortcomings with some of the lender's documents.

Michael and Analisa Jones borrowed $527,000 in 2006 to buy a home in Sparks but defaulted in 2010 and faced foreclosure. In November 2010, Michael Jones and his attorney signed an agreement to accept a short sale after meeting with lender SunTrust Mortgage.

Later, Jones balked at completing the follow-up documents and sued SunTrust, alleging it had not produced an assignment of the loan from the original lender or certified copies of the deed of trust. The Joneses also alleged the short sale gave them no benefit.

But the court found that holding off a foreclosure during the sale process was of value to the couple, making the deal a valid contract. The lack of certain documents did not change that, the court found.

Because this was a published ruling, it becomes a precedent for state courts.

Contact reporter Tim O'Reiley at toreiley@reviewjournal.com or 702-387-5290.