Jacob and dad are on a ferry to Cairnholm Island. Dad's checking out the local birds; Jacob is trying not to barf.
The ferry captain tells them that they're sailing over a nautical graveyard, the resting place of many ships sunk by U-boats.
After the ferry docks, Jacob and his dad look for the bed and breakfast where they have a room.
The man at the museum tells them it's called the Priest Hole and he gives them directions.
Before they leave, Jacob asks the man where the old children's home is; according to the man, it's on the other side of the island, but it's not worth heading over there.
Dad and Jacob head over to the Priest Hole, which is near a statue called the Waiting Woman.
The Priest Hole isn't a bed and breakfast, though—it's more like a bar and bedroom.
The barkeep, Kev, leads them to their room, and lets them know that the town basically shuts down at 10:00PM. Power is expensive, and the generators go off at that time.
Jacob asks why the place is called the Priest Hole, and Kev tells him how Catholic priests sought refuge there when Queen Elizabeth was after them.
That night, Jacob falls asleep and doesn't have a single nightmare.
The next morning, Kev serves up breakfast. Fried toast. He says that there isn't a food "that couldn't be improved by frying" (3.43). Truth.
Jacob tells Dad he's going to find the house, but Dad insists that he find someone to go with him.
The fishmonger refers Jacob to a kid named Dylan, and they set off toward the other side of the island.
On the way, they bump into another teen, this one named Worm.
He and Dylan do a white boy rap, and then lead Jacob across the bog together.
They get to a small boarded-up house, and the boys tell Jacob to look inside.
It's a makeshift sheep stable, and it's full of sheep poop.
The boys laugh at their prank, then tell him where the real house is—but they won't go with him.
Jacob follows their directions and reaches the house.
It's not the "bright, happy place" (3.116) Grandpa acted like it was, and instead, it's almost totally destroyed and collapsing in on itself.
Jacob walks around the house and finds a doorway minus a door, and walks on in.
Some of the rooms are missing walls, many are overrun by plants, and there's mold everywhere, as well as "evil-looking stains" (3.122) in the kitchen.
Jacob feels "further than ever from the truth" (3.123).