Several years later, BAC filed a foreclosure complaint against the Nowlins, claiming that the Nowlins had defaulted on a mortgage and promissory note executed in 2002. BAC asserted that the Nowlins had defaulted because BAC had not received the payment due in August 2009 and no further payments had been received. BAC later transferred the loan to Nationstar, who substituted as the plaintiff in the trial. The trial court ruled in favor of Nationstar and the Nowlins appealed, arguing that the loan modification precluded the foreclosure complaint.

In the appeal, the Nowlins showed they had sent the signed and notarized mortgage modification documents via federal express to BAC. They also gave proof of three certified checks that were cashed by BAC for the months of October, November, and December. Despite the defendants’ compliance with the terms to modify the loan, BAC had canceled the modification, because the paperwork submitted by the defendants was not on file. Do you think there was a valid loan modification agreement between BAC and the Nowlins? If so, what kind of agreement would it be? How do you think the appeals court ruled? Why?