Johnnie Jefferson, an 85-year-old resident of Richmond, Texas, says she is facing the heartbreaking prospect of losing the six-bedroom home she has lived in for more than two decades after a disagreement with her bank over her mortgage payments.
“It ruined my whole life,” she told Fox 26 Houston in a story broadcast on November 20. “I have nowhere 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 amounts, putting her housing situation and her future in jeopardy.
This is what happened.
Jefferson's luxurious home, which she has 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 that she was one of the first non-physicians to own a medical clinic in the Houston area. Jefferson says she put her savings into the house.
But the decision to get a loan modification may have cost her dearly.
“[She] I spoke to someone and it was a verbal agreement,” Kietha Hamilton, an attorney representing Jefferson, told Fox 26. “They never got it in writing.”
Afterwards, Jefferson's bank disputed the mortgage amounts, and according to the broadcaster, the bank filed a motion for summary judgment to seize the house in 2019. It is now under seizure, according to documents obtained by Fox 26.
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Foreclosure occurs when a borrower fails to make necessary mortgage payments and the lender takes legal action to reclaim the property. In most cases, the process is started after the homeowner has missed several payments, and it can take months to complete.
Jefferson's legal team says they are engaged in a lawsuit to recover the assets – estimated at $400,000 – from the million-dollar property.
Fox 26 did not indicate whether they were trying to reach the bank or its legal representatives for comment.
Mortgage modifications are generally intended for borrowers who are experiencing financial difficulties. They can provide relief by changing the terms of a loan, such as the repayment period or interest rate. Modifying a loan is similar, but separate from refinancing a loan. Legal experts, including Jefferson attorneys, emphasize the importance of putting any changes to your mortgage in writing.
