12-year-old DJ Walters is spying on his elderly neighbor Mr. Nebbercracker, an old grouch who confiscates any item that strays into his yard. After his parents leave for a dentist's convention they place him in the care of Elizabeth "Zee" and her friend Charles "Chowder". After Nebbercracker is sent to the hospital, they notice his house acting strange, such as placing phone calls by itself and appearing to eat every item and person that lands on its front lawn. On Halloween night the children decide to finally crack the mystery of the old man's crazy house and learn from Mr. Nebbercracker himself that the house actually contains the spirit of his wife Constance who died in an accident while he was building the home and later possessed the home becoming angry and bitter. Old Man Nebbercracker and the kids must now work to stop the house from further destruction and put Constance's spirit to rest.