I don't buy the "lost phone and no internet" excuse. He doesn't have any relatives or friends who have Internet access that he could use to take care of this? The local library has Internet with machines for use. If there is a will, there is a way. Be sure to keep all communications between the two of you, in case this is a problem and you have to prove your side.
I do hope that all of this works out well for you. It is a real shame that we have so many people in this industry who don't do things the right way.