True, but couldn't the Iron Company sue me since I placed the order? Kindly read some of the responses I've received and my replies. It seems to me my only resort will be to pay the Iron Company its balance and sue the new homeowner in small claims court since he was blatantly using coercion to force me to get him what I expressed to him in writing I was unable to financially (or legally) do. I offered to split the cost as I mentioned, but he is being completely unresponsive and just wants his way. Guess I'll have to go to District Court and file a case.

I will get my escrow back in a day or so but that still leaves a balance to be paid with the Iron Company. Also, I am out of state and the Iron Company does not have my current address so I could just run away from it all but I fear reprisal.

If the purchase order was in your name they will most likely try and recover from you. If you don't pay, it is a small amount so they will either sue in small claims court or they may just file a mechanic's lien against the property. You can sue the buyer in small claims court but you will have a hard time proving your oral agreement and if you get a judgment you still have to collect it unless the buyer pays it voluntarily. If they file a mechanic's lien it will get the buyer's attention because it will be against his property. If you choose to just "run away" the will eventually get a default judgment against you if they pursue it which they will have a very difficult time collecting and it may not be worth their effort. The judgment would stay there for 10 years then expire. It would be earning interest for the period so if they found your new address and found assets it could end up costing you a lot more or it could just go away. It is a gamble to run away but worst case scenario is it catches up to you and you pay the judgment plus the interest.

The judgment could also show up on a credit report if you try and borrow money in the future and you may be required to pay it at that time to get a loan or it could lower your credit score.