Sutherland v. Barclays American/Mortgage Corp.

Sondra Sutherland (plaintiff) owned a home on which she had issued a mortgage to Barclays American/Mortgage Corporation (Barclays) (defendant). Three days after an earthquake damaged her home so badly that she had to move out, Sutherland called Barclays about her mortgage. The Barclays agent on the phone assured Sutherland that Barclays would put a three-month stop on Sutherland’s account during which Barclays would demand no payment. Sutherland ceased making payments for three months. Four months after the stop began, Sutherland mailed Barclays her normal monthly mortgage payment. Barclays refused to accept the check, saying that Sutherland owed Barclays four months’ worth of payments, not just one. Sutherland expressed to another Barclays representative that Sutherland believed that the three months of stopped payments would be tacked on to the end of the mortgage period, not that the stopped payments would be due immediately. The Barclays representative suggested that Sutherland pursue a program with the Department of Housing and Urban Development (HUD) whereby the HUD might accept an assignment of the mortgage from Barclays and work out a payment plan with Sutherland. After the HUD declined the assignment, Sutherland again attempted to begin making regular monthly payments to Barclays. Barclays again refused to accept the payments. Sutherland sued Barclays, seeking a declaration that she had not defaulted on her mortgage. The trial court ruled in favor of Barclays, and Sutherland appealed.