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Is a unpaid "loan contract" a lost cause?

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Right before the casino update that locked so many of us out of the city I sold my business property to a guy who worked for city hall. The property was listed at 1.2 mil, sold for 800 with the additional 400k being a loan that was suppose to be repaid back to me. I haven't been able to get a hold of the individual and I heard through the grapevine that he quit the city completely. Am I just screwed out of that 400k now? If I have the "contract that was made up for the loan is there any way to get the property returned to me from the government? 

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