An 85-year-old woman from Richmond, Texas, is facing the looming prospect of homelessness after a disagreement over her mortgage modification.
Johnnie Jefferson has lived in her six-bedroom home for over 20 years, but an oral agreement made in 2012 with her bank to modify her loan has now escalated into a legal battle that threatens to strip her of her home.
Jefferson, a retired nurse who once owned a medical clinic, was hoping the loan modification would provide relief. However, the bank has since disputed the terms of the verbal agreement, leading to a foreclosure action in 2019.
The bank filed a motion for summary judgment to seize the property, which is now valued at over $1 million, according to documents obtained by Fox 26 Houston.
Jefferson’s legal team is working to recover an estimated $400,000 in equity from the property.
Jefferson’s attorney, Kietha Hamilton, emphasized the crucial lesson for homeowners: always get modifications in writing.
“Verbal agreements are difficult to enforce,” Hamilton said, highlighting the risks of not formalizing the modification in a legally binding contract.
Real estate experts advise anyone negotiating a mortgage modification to ensure all terms are documented in writing to avoid future disputes.
As Jefferson fights to save her home, her story serves as a warning to homeowners navigating the complex world of mortgage modifications.
Legal experts, including Charles Herbert, another member of Jefferson’s legal team, stress the importance of reviewing all agreements carefully to ensure long-term protection.
