Texas woman, 85, says she faces homelessness after her bank disputed an ‘oral agreement’ to modify her mortgage

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Texas woman, 85, says she faces homelessness after her bank disputed an ‘oral agreement’ to modify her mortgage

Johnnie Jefferson, an 85-year-old resident of Richmond, Texas, says she faces the heartbreaking prospect of losing the six-bedroom house she has lived in for more than 20 years after a disagreement with her bank about her mortgage payments.

“It has just wrecked my whole life,” she told Fox 26 Houston in a story broadcast Nov 20. “I have no place to go.”

According to the local broadcaster, the ordeal began in 2012 when Jefferson verbally agreed to a loan modification. It has since escalated into a legal battle over mortgage payment amounts, threatening her housing situation and her future.

Here’s what happened.

Jefferson’s upscale home, which she’s lived in since 2002, is more than just a roof over her head — it represents a lifetime of hard work. As a nurse, Fox 26 reports she was among the first non-physicians to own a medical clinic in the greater Houston area. Jefferson says she put her life savings into the house.

But the decision to get a loan modification may have cost her dearly.

“[She] spoke to someone and it was an oral agreement,” Kietha Hamilton, an attorney representing Jefferson, told Fox 26. “They never got it in writing.”

Afterward, Jefferson’s bank disputed the mortgage payment amounts, and according to the broadcaster, in 2019, the bank filed a motion for summary judgment to take the house. It’s now in foreclosure, documents obtained by Fox 26 show.

Read more: The long-awaited rate cuts are finally here — here’s what investors need to know, and why commercial real estate may be worth a closer look

Foreclosure occurs when a borrower fails to make the necessary mortgage payments, and the lender takes legal action to reclaim the property. In most cases, the process is initiated after the homeowner misses multiple payments, and can take months to complete.

Jefferson’s legal team says they’re engaged in a lawsuit to recover the equity — estimated to be $400,000 — from the million-dollar property.

Fox 26 didn’t indicate if they tried to reach the bank or its legal representatives for comment.

Mortgage modifications are commonly for borrowers facing financial hardship. They can provide relief by altering the terms of a loan, such as the period of repayment or interest rate. Modifying a loan is similar but separate from refinancing a loan. Legal experts, including Jefferson’s attorneys, stress the importance of getting any loan modifications to your mortgage in writing.

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