There should be one more encounter on Lanilor Lane before he says he will wait for you at his house. From Lancet's
DKS FAQ/Guide;
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A SWINDLER SWINDLED
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Start: Speak to Willy on Lanilor Lane. There are four possible locations to meet him, and he stays at the last one. At the first three locations, you have the opportunity to swindle him for 500 gold, for a total of 1500 gold. This has no effect on his quest. The locations are in the following order:
A: At the entrance to Lanilor Lane, from the Great Market.
B: At the end of Lanilor Lane, near the gate to the alley that leads to the Temple of Nimir.
C: Near the center of Lanilor Lane, west of the shrine.
D: Outside Willy's House, east of the shrine.
