Answer Happy

Vernice and Stephen Buyer, the Buyers, were seeking a larger living space a few years ago and purchased a townhouse in southeast Washington, D.C. The mortgage on their residence was approved by New American Finance. The Buyers, however, had been having some problems making their payments in a timely fashion because Stephen had lost his job when his company had to reduce staff during the pandemic. In fact, in March 2021, they had become three months behind ($9,000) on their mortgage payments. Accordingly, the Buyers and New American Finance entered into numerous discussions on how to resolve these issues so as to avoid adversely impacting Buyers credit ratings and to stay on track with their purchase plans. They reached a simple solution. The Buyers entered into an arrangement with another institution through which they could borrow a lump sum so that they could bring the mortgage with American Finance current and be able to continue making monthly payments. New American Finance was happy to hear this and informed the Buyers that they would initiate the process to put everything in place Shortly thereafter In April 1, New American Finance called the Buyers and informed them that "If you make a $9,000 payment by certified check by April 15 to pay for the past due payments, New American Finance will continue with our mortgage relationship." On April 13, Buyers mailed a certified check for the $9,000 to New American Finance, who received the check on April 16, and acknowledged receipt of it to the Buyers that same day. A week later on April 23, New American Finance had not yet deposited the check so the Buyers went to New American Finance to find out if there was a problem. They were informed that management had changed that the new management was not accepting their payment and that we will send a notice of default under the mortgage and initiate foreclosure proceedings on the townhouse." Then new management asserts that: 1. The Buyers payment was not effective until after the April 15 deadline had passed; and, 2. Even if the payment was timely, the new management is not bound by the agreement made by its predecessor Discuss the legal validity of the new management's positions