As the family move in, Donna (Rita Taggart) searches the basement to find their missing cat Gazmo. The furnace turns on and the door flings open; apparently Max’s spirit is inside the house and focused on the basement. Lucas starts having hallucinations that lead him to behave erratically. Bonnie (Dedee Pfeiffer) goes to the cellar to secretly meet her boyfriend Vinnie, who is later killed by a physical manifestation of Max with a cleaver. The next night, Bonnie tells Scott (Aron Eisenberg) to come with her to look for Vinnie, while Lucas goes to the basement and angrily calls for Max to stay away from his family. Bonnie returns to the basement and finds Vinnie’s body for which Lucas is suspected of the murder.Max kills Scott with the meat cleaver, transforms into Bonnie and decapitates Campbell before holding Donna hostage. Lucas escapes from questioning and goes into the cellar to fight Max. Lucas sends Max to the electric machine where his arm gets stuck, Lucas and Donna use the chair to shock Max causing him to appear back in physical form in the house where Lucas shoots him dead.
The next day the McCarthy’s are moving out with Scott still alive. Bonnie goes into the basement and runs outside to find Gazmo in a box. The family takes a photo as the screen freezes and fades to black.