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I think trying to send the letter like Melinda says is a good idea if you want to go the extra mile and ensure you've done everything possible to contact the guy. As for the payments already made, if any was a deposit, it's forfeit then return the balance (or in full if no deposit) back to the buyer with a note advising you are cancelling the sale due to lack of response and payments not made in a timely manner (assuming it was done via paypal). Edit to add - Just re-read and you did say the payments made would be forfeit, so there you go. If you want to return any as a good-faith show fantastic but as long as he was clear on the terms, you are well in your rights to just end the transaction.
Good luck!
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