Over the Memorial Day weekend Nora and I went through a few open houses in The Woods Resort where we owned a cabin. We feel in love with another larger cabin and put a contract in on it. We settled in late June and moved in.
We placed our current cabin up for sale the day we put the contract in for the new cabin. We were placed when we recieved a full contract offer within 3 days. The buyer informed us he needed about 60 days for settlement saying that he was involved in a settlement and was merely waiting on the check from the lawyer.
As it turned out this was incorrect. The was no settlement and the company was challenging him. In the process his loan was denied and the cabin was put back on the market. However, now of this came to light until the week before last. We were to settle this coming Monday.
Talk about bad luck. We currently now have 3 mortgages, plus a home equity loan. With the prime selling season coming to a close we might have to wait several months for another good offer. It is very possible that we might not get a good price until next summer. If that is the case, so be it. We have no intention of jumping at any low underpriced offer. Before we put the contract in on the first cabin we sat down and figured up all expenses and looked at the possiblity of having to carry all of the loans for an extended period. We can handle it without any major problems. Nora’s car is now paid off. That amount covers the home equity loan (which was used for the down payment on the new cabin). I have been making nearly double payments on the first cabin since the beginning. I merely cut this back to the regular payment and added the rest to the new mortgage. When the first cabin sells we’ll pay off the home equity loan plus the first cabin’s mortgage. At that point I’ll start making extra payment towards principal to the new cabin.
The new cabin is wonderful. It is 1500 sq ft (vs 1000 sq ft for the 1st cabin). While 50% larger it actually feels like it is 3 times the size of the first cabin.