The issue is fixed – I deactivated my theme “Nectar” and changed to “Twenty Fifteen.” Then I reactivated “Nectar” and somehow the problem resolved itself. After reactivating Nectar I was able to change the permalinks to “post name” and the 404 error page is gone.
UPDATE:
I found that when I change permalinks back to Default setting the page no longer has a 404 error file. But that means I am unable to customize my page and post links.
Does anyone know how I can use the “post name” permalinks and not get a 404 error?