The sentence as it stands there is not correct.
This is due to the circumstance that to sleep is usually an intransitive verb that does not take an object. With the leading was the construction would be passive voice, but English doesn't use intransitive verbs that way. However, intransitive verbs can use the past continuous and thereby was sleeping.
sleep intransitive verb
to rest in a state of sleep - MW
Admittedly there are transitive uses of sleep, but they do not fit in the construction of the sentence in the question.
The problem with intransitive verbs is that they don't go over into a passive voice. I.e. you can't be slept. If it was a transitive verb that took an object that would easily be understood. Take the transitive verb to slap for example.
I was slapped when he came back to the home.
This sentence offers two explanations at once. Firstly it's homophone to the sentence from the original question. Thus, it might be what was spoken if the question is based on something heard.
Secondly it shows that two past tense verbs can actually be just simple past but in a passive construction.
In the most commonly considered type of passive clause, a form of the verb be (or sometimes get) is used as an auxiliary together with the past participle of a transitive verb; - Wiki: Passive Voice
A transitive verb is a verb that requires one or more objects. This contrasts with intransitive verbs, which do not have objects. Transitivity is traditionally thought of as a global property of a clause, by which activity is transferred from an agent to a patient. - Wiki: Transitive verbs
In narrative, now can refer to a center-of-consciousness (an intelligence, an ego) as having a sense of The Present, at a time in the past.
Her "this moment", her "now", is our "that moment", our "then".
His parents had been murdered in an alley, and now he was alone, alone
with his great fear of bats.
This is a very old usage of now and is attested even in the English spoken in medieval times, 9th-10 century.
Best Answer
Your first sentence is correct since all your verbs are in the past
You could put your third sentence all in the present with a simple change