buying a home and seller now claimes she does not own house

texas; my husband made an agreement to buy a used mobil home from his sister for $7000 there was no contract and he has paid a total of $2400.we have lived in the home with our 3 children for 4 months and we do have receipts for each payment made on which the remaining balance is written and signed by the sister who was selling. now she has changed her mind and does not want to sell claiming first the home legally belonged to her 4yr old daughter and now she claimes that the father of her daughter is sueing her for the home. she only wants to refund $2000 however we have made repairs to it and have no where else to go if we do move. What are our legal options and if we do move how much refund money are we entiteled to to help us afford the cost to move?

thank you for any help you can provide

[HomeGuru]

Take the $2000 and get the heck out of there.

[LegalBeagle]

This also might just be a ploy to get the place back. If the 4 yo owns the place, then what right the father has to sue her?

However, I agree with HG.. when trouble like this surfaces, get out asap.. later on you could find yourself being evicted and having no money offered.