If you can't recover your money, there may be a way to cloud the title to ensure that you eventually get paid when they try to sell again.Obviously, the big lesson here is to NEVER hand money to a seller on the promise of a deal.

@Regine Saint-Laurent, in most states you can file a cloud on the title (called a Memorandum) that will ensure you are paid should this happen.

If you have inspected their present home and are comfortable with the situation fine but do not allow financial greed to cloud your decision.

Deal got closed, no problems, by simply calling a few title companies and finding one that didn't think the cloud was truly a risk.

Check with the title company and ensure there are not other clouds on title and transact, dealing with any other issues with the seller.  

However you may grab a handful of clouds.

I might not want to buy it with a cloud on the title/deed.I'm going to talk with an attorney tomorrow, get a contractor to come look at the property and get some more information on the numbers.Also the home just behind it is the brother of the $6,000 home.  

What I think clouds some of the rest of our agreement is we have learned over the past six years just how great that burden is, how naive and stubborn many seller financiers are, (which affects their comprehension), and how many people are trying to sell "answers" to promote some money making scheme that benefits them without thought to the conserquences to the people who invest in those " easy answers".

This will cloud the title and block anyone else from buying it.

Should the B to C find out about the lack of disclosure, or the A to B learn of the transaction prior to the 30 days, the title could be clouded and the end-buyer may have a case against you.