When I got on the plane last Friday to begin my journey back to Canada, I left thinking that everything was proceeding as planned in our procurement of a manufactured home in San Jose, California. Apparently, there IS something to the adage of not counting your chickens before they are signed, sealed and delivered!
A note from Glenn in my morning mail cast a gloomy shadow on our planned move to this new home. We THOUGHT that everything was proceeding as hoped, but it turns out now that we may not have enough free cash to seal the deal. Glenn had planned on cashing out a sizable chunk of his stock in Apple that he has acquired during his 2 year employment with Apple, here in Cupertino CA. It turns out that someone’s calculations are slightly off, so we may be slightly short of the target amount.
I don’t believe that total includes closing costs, so we might be even further off our goal. Dealing with a manufactured homes dealer is even more complex than buying a home or condominium. Since you are not buying the land, but merely the dwelling that sits on the land, you must also pay monthly rent for the land itself! Plus, there are numerous codicils that go with both the dwelling AND the land, all of which one must adhere to!
This latest hiccup has given me cause to emotionally dig in my heels, even though I’m currently sitting in frigid Peterborough Ontario. I have had an awful lot of second thoughts about this purchase, and now the company is pushing all the wrong buttons. No one seems particularly anxious to ease our way through this perplexing transaction, not even the vendor OR the host park management.
We have an introductory appointment with the park management next Tuesday, but that may be moot. If we cannot secure the finances required to seal the deal, then obviously it will all fall apart. The problem lies in the difference between how the numbers are calculated. Since we aren’t buying a brand new unit, there is a different percentage required for a downpayment, plus the rate offered on the loan is higher. Instead of the 5.75% we were initially told, we are now facing 6.4%. As a result, our monthly payments would be impacted, and NOT in a good way!
I’m disappointed, but have decided to view this setback in the same way that Evan and Claire have done with their recent disappointments in the world of real estate. If it does indeed fall through, then it simply wasn’t meant to be.