Legal Question in Credit and Debt Law in North Carolina

This is confusing here. Where is the building located? Is it on the neighbor's property or yours? The neighbor just cannot take over payments. That was a poor way to handle this transaction. As between you and the finance company or company that sold it, if your name is on the contract then you are liable to pay for it regardless.

Do you have any kind of bill of sale or documentation with the neighbor? If not, then you do not have any kind of agreement. While you can have verbal agreements, they really need to be in writing for anything to obligate the neighbor to pay substantial sums of money.

According to your post, the neighbor only made one payment. Obviously he does not want the building anymore. I would send him back the money and, if the building is on your property, and advise him in writing that the agreement is terminated. Advise him that if he had anything in the building, you are going to hold his stuff for 30 days and advise as to how he can retrieve it. Send the letter to his home by UPS/FED Ex and get signature confirmation so you can prove that he got it. Go into the building and clean it out. If anything belongs tro him, I would inventory it and photograph each item. I would hold it for the 30 days after his receipt of the letter. If you do not hear from him, then I would sell, donate to charity or otherwise dispose of it, assuming the stuff in there was under $500.

If the building is not on your property but on his, then you have a problem. You cannot just trespass on his land. In such case, you would need to take the building back but you would need to contact him to arrange to come onto his property for that purpose. Of course, if you wanted to let it get repo'd you could then tell the lender where it was at. However, the repo would be on your credit, not his.

Letting the building get repo'd is not smart. Why don't you pay the thing off and put it up for sale on Craig's List or eBay or some sight like this and sell it for whatever you can get for it? At least you will get some money back that way.