The Fifth Circuit held that a purported oral agreement to enter into a loan modification was unenforceable. See Gordon v. JPMorgan Chase Bank, N.A. 2013 WL 49587, (5th Cir. 2013) (Unpublished opinion). The Court explained that under Texas law, the alleged oral agreement could not modify a previous written agreement as the loan was in excess of $50,000.00 and was not in writing. Plaintiff argued that the bank’s employees verbally assured her that she would receive the loan modification. The Plaintiff even argued promissory estoppel, but the Court denied the claims and dismissed the lawsuit.
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If you have any questions or would like more information about loan modifications, the statute of frauds or promissory estoppel, please contact Pat Huttenbach at 713.220.9184 or firstname.lastname@example.org.