I don't know how much shit people need to see before they decide to get the hell out of a house but Matt and Shelby are so damn slow on the uptake that they seriously deserve Kathy Bates to just end it for them already. They are walking Darwin Award winners if I've ever seen it.
Okay, having turned Lee into the police, Shelby wants to know how Matt could possibly sleep with forest Gaga. Look, having an unfaithful partner is not a fun thing but given everything that Shelby has seen so far, this should have been pretty low on the list of concerns. At any rate, Matt denies Shelby's accusations and increasingly becomes upset because he has no memory of what she is talking about. Seeing Matt in tears is finally enough for Shelby to decide that he's innocent and that maybe ratting Lee out wasn't such a good idea.
After things calm down, Shelby heads for the shower which of course makes me wonder if she's ever seen Psycho? Nothing good comes from showering when you're in a horror situation. Predictably, pig man jumps out to say hello. Shelby runs screaming and calling out for Matt, who uses a football tackle to get pig man away from Shelby. Luckily for them, Dr. Elias Cunningham (yes dude from the videotape) arrives in time to put an axe into the back of pig man. Unfortunately, pig man has developed a never say die attitude and Elias screams, "Croatian" which banishes pig man back from whence he came. See, I can do the old fashioned speech.
It turns out that Elias had decided to hold onto the house after discovering its dark past to avoid anyone else ending up dead. Unfortunately, he fell behind on his property tax payments and that's how Matt and Shelby ended up stupidly paying 40K for the house of death. Elias has knowledge he wants to share but Matt and Shelby are suspicious and even wonder if Elias simply wants the house back and that's why he's trying to scare them out. OMG these two are stupid to live. They were just chased by a pig man and are worried that Elias wants the house of death back.
So, they wisely decide to listen to Elias and he tells them about how all of the previous owners of the house ended up dead. Cut to the Chen family, who immigrated to the states determined to live a true American lifestyle. Unfortunately for them this included good awful television dinners and the Partridge Family. Yes, they did this to themselves in order to be more American. Despite several warnings from Kathy Bates to leave, the Chen's end up dead. Clearly they were another family too stupid to live. When a ghost tells you to get the fuck out, the correct response is always to flee like your ass is on fire. It turns out that even the murdering nurses who Matt saw earlier ended in bad way thanks to Kathy Bates. Given their torture of the elderly, I didn't have the heart to feel sorry for the nurse who had her arms ripped from her body.