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I think many thinks can have happened. Like you said, may be he is in the hospital, dead, a dead in his family, lives in New Orleans, etc.
Sounds like the guy was serious enough and like you said, if he wanted to screw you in some way, he would have done that by now. So that's not too likely.
I would say one of the things you could do is visit him and see what is going on. Do you have his home address? If he's not there, ask the neighbours if they know something. Of course it all depends on how much this domain is worth you and how far you live from the guy.
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