Elderly Woman At Risk Of Homelessness As Bank Challenges ‘Oral Agreement’ To Modify Her Mortgage

An elderly woman in Texas is facing foreclosure following a disputed "oral agreement" on her mortgage.

An 85-year-old woman in Richmond, Texas, may lose her home of 20 years due to a dispute over an “oral agreement” with her bank regarding her mortgage.

Johnnie Jefferson’s six-bedroom, four-bathroom home faces foreclosure following a loan modification in 2012 that was done through a verbal agreement and never put in writing. After years of disputes over the monthly mortgage payments, Jefferson is stressed over the possibility of the bank taking her home.

“I never imagined I’d be in a situation like this, never,” Jefferson told Fox 26 Houston.

The retired nurse, who purchased her home in Richmond’s upscale community in 2002, was also one of the first non-physicians to own a medical clinic in the greater Houston area. She decorated the house herself and expressed her pride in the asset.

“I take lots of pride in my home,” Jefferson said. “It’s my whole life. I have nowhere else to go. We put my lifetime savings into this house.”

Now, attorneys familiar with the situation are stressing the importance of getting everything in writing, especially concerning a home mortgage.

“They spoke to someone. It was an oral agreement they never got in writing what they thought they were getting,” said Jefferson’s attorney, Kietha Hamilton, with Hamilton and Co Law Firm. “With real property, everything needs to be in writing.”

“Bottom line, get everything in writing,” attorney Charles Herbert added. “Follow up as they always say, read the fine print.”

Jefferson and the bank were in a dispute over the monthly mortgage payments. In 2019, the bank filed a motion for summary judgment to seize Jefferson’s home.

The situation has landed Jefferson in the hospital due to severe stress and anxiety attacks.

“I had to spend nights in the hospital with anxiety,” she said. “I developed depression. It’s just ruining my whole life. I have no place to go. Where am I going? I have no place to go.”

Hamilton says they are doing everything they can to fight for Jefferson against the bank, given the circumstances.

“We’re in federal court, and we are suing for Miss Jefferson to get the equity out of her house,” said Hamilton. “The property is worth approximately a million dollars. They sold it back to themselves for 600 thousand. There’s 400 thousand in equity we feel like Miss Jefferson is owed.”

Mortgage modifications are often designed to assist borrowers experiencing financial hardship by adjusting loan terms, such as the repayment period or interest rate. While similar to refinancing, loan modification isn’t the same.

Legal experts, including Jefferson’s attorneys, emphasize the importance of documenting any mortgage modifications in writing. Homeowners seeking to modify their mortgage are encouraged to consult a real estate lawyer to review the new terms.