Retired Lawyer Says He Was “Manic” When Buying a $5.5M Cliff House—Now Wants Mortgage Canceled

What Happened?

Imagine buying a giant, fancy house right next to the ocean—so close that the ground underneath it is literally falling into the water. That’s what a retired New York lawyer did, and now he says he shouldn’t have to pay for it.

• A retired New York lawyer bought a $5.5 million mansion on Cape Cod that was about to fall into the ocean.
• He says he was “manic” (in a super-energized, not-thinking-clearly state) when he bought it.
• Now he is asking a court to let him skip the mortgage payments.

Meet the People and the House

John G. Bonomi Jr., age 66, is the retired lawyer.

• In November 2021, he bought a 5,817-square-foot house between Cape Cod Bay and Wellfleet Harbor.
• The house cost the full asking price: $5.5 million.
• The land around it was washing away at 3.8 to 5.6 feet per year (like a sandbox slipping into the sea).
• The home was built in 2010 and had:
  • 5 bedrooms
  • 7 bathrooms
  • Pretty sunset and water views
• It was later torn down so it wouldn’t crash into the ocean.

Important Point: The house was built by a couple named Mark and Barbara Blasch, even though the National Park Service said “please don’t.” Locals nicknamed it the “Blasch house.”

The Money Part

Bonomi still owes a lot of money:

• He owes $3,850,000 on his mortgage (the loan to buy the house).
• He is suing the bank JPMorgan Chase in a New York federal court to cancel that debt.
• He paid $21,053 every month from November 2021 until September 2024.
• The bank gave him a $3,850,000 loan when he bought the place.

Why He Says the Mortgage Should Be Canceled

Bonomi has a mental health condition called Bipolar I Disorder (a brain condition that can cause extreme mood swings, including “mania”—a state of reckless, impulsive behavior). He was diagnosed in 2009.

His arguments:

1. He says he was in an “uncontrollable manic psychosis” when he signed the loan papers.
2. He says “no rational person” would buy that house at full price.
3. He claims the bank knew or ignored that he wasn’t thinking clearly.
4. He says the bank took “unconscionable advantage” (meaning they unfairly used his condition).
5. He says a Chase officer named Kimon Psihudakis hid a letter saying Bonomi would retire soon (because Chase won’t lend to people close to retirement).
6. A “seductive” 3-minute video about the house made him want to buy it even more.

Important Point: New York State has a rule that says if someone’s mental health condition made them unable to understand a contract, that contract can be canceled. So his claim isn’t as silly as it sounds!

What the Bank and Experts Say

• In May, JPMorgan Chase said the claims aren’t true (after first trying to dismiss the case).
• Ethan Leib, a law professor at Fordham Law School, told the Boston Globe that Bonomi has a “difficult burden of proof” (meaning it’s hard to prove). He asks: how could the bank know he was manic?
• Annie Harper, a Yale psychiatry professor, says it’s “complicated” and wonders how to protect people from money disasters like this.
• Experts agree a person with mania could spend that much money without thinking.

What Happened to the House?

Step by step:

1. The house was famous and controversial for years.
2. Bonomi tried to sell it for $1 million less but couldn’t.
3. In February 2025, officials said the house must be demolished (knocked down) to stop it falling into the sea.
4. Demolition finished in March 2025 and cost Bonomi $250,000.
5. In January 2025, the empty land was re-valued at only $385,000.

What Bonomi Wants From the Court

He is asking for:

• A jury trial (regular people decide the case)
• The $3.85 million mortgage to be canceled (plus interest)
• Extra money for damages and lawyer fees

How the Community Feels

• The house made neighbors annoyed and the media obsessed.
• Corinne Demas, a Wellfleet professor, said: “The whole thing has been preposterous from the start… people with enormous ego and vast amounts of money [built] a house where no one thinks a house should be built.”

Summary

A retired NY lawyer, John Bonomi, bought a $5.5M Cape Cod mansion on collapsing cliffs while in a manic state linked to bipolar disorder. He still owes $3.85M and is suing JPMorgan Chase to void the mortgage, saying the bank should’ve known he wasn’t competent to borrow. The bank denies this. NY law allows mental state to invalidate contracts, but experts say proving it is hard. The house was demolished in 2025, and the land is now worth only $385K.

FAQ

1. What does “manic” mean in this story?
Mania is a phase of bipolar disorder where a person feels extremely energetic and may do risky or impulsive things—like spending huge amounts of money without worrying.

2. Can someone really cancel a mortgage because of mental health?
In New York, yes—if they can prove their mind was so affected that they couldn’t understand the contract. But it’s very hard to prove, according to law experts.

3. Why was the house torn down?
Because the land was eroding (washing away) fast, and the house was in danger of falling into the ocean. Demolishing it cost Bonomi $250,000.

4. How much did the land become worth after the house was gone?
The town valued the empty land at $385,000 in January 2025—much less than the millions paid before.

5. Did the bank respond to the lawsuit?
Yes. JPMorgan Chase denied the allegations in May after first trying to get the case thrown out.