Lawyer bought stunning $5.5m Cape Cod mansion knowing it was at risk of falling into the ocean... now he says he made a mistake and that he shouldn't have to repay his mortgage

By NATASHA ANDERSON, US SENIOR NEWS REPORTER Published: 15:11, 16 July 2026 | Updated: 15:25, 16 July 2026 A retired lawyer who bought a $5.5 million Cape Cod mansion that could soon topple into the ocean now says he shouldn't have to repay his mortgage because he was 'manic' when he bought it. John G Bonomi Jr, 66, purchased the 5,817-square-foot Blasch house mansion in November 2021 for the asking price of $5.5 million. The gorgeous five bedroom, seven bathroom residence was built in 2010 on top of a narrow coastal bank between Cape Cod Bay and Wellfleet Harbor. Bonomi went through with the sale in defiance of well-publicized reports about catastrophic erosion threatening the home, according to his lawsuit filed in the United States District Court for the Southern District of New York. The home has since been demolished to 'prevent it from collapsing into the ocean' and causing a major ecological hazard, the complaint said. Bonomi, who owes $3,850,000 on his mortgage, is now suing JPMorgan Chase in an attempt to void the note and any associated interest. He is also seeking damages. He alleged that 'no rational person' would have purchased the home and claimed he 'lacked the capacity' to enter into the mortgage agreement because he was 'acting under an uncontrollable manic psychosis' at the time of the sale, the filing said. He has accused the banking giant of taking 'unconscionable advantage of his condition' and claims it should not have lent his the funds to buy the house.  Chase, in its response to Bonomi's complaint, has denied the allegations.  The 5,817-square-foot Blasch house mansion once sat atop of a sandy bluff overlooking a beach in Wellfleet, Massachusetts The gorgeous five bedroom, seven bathroom residence was built in 2010, but had to be demolished last year to 'prevent it from collapsing into the ocean' When Blasch family put their 'endangered house' on the market five years ago, the foundation sat about 14 feet from the edge of the eroding coastal bank, according to the complaint obtained by the Daily Mail. The property listing acknowledged the erosion, which at the time was occurring at a rate of approximately six to seven feet per year, Bonomi's filing said.  Chase allegedly commissioned two property appraisals before extending the line of credit to Bonomi and demanded he obtain documentation from an engineering company that had been trying to slow the erosion. 'It strains credulity to believe that Defendant Chase bank was unaware that the dune supporting the home on the Property rapidly was eroding away, meaning that the Property soon would become worthless as collateral – or worse, a massive liability due to its collapse onto a protected national seashore,' Bonomi's suit said. Bonomi further accused Chase lending officer Kimon Psihudakis, who no longer works with the bank, of blatantly ignoring a letter from the lawyer's employer which stated he would be retiring in May 2022. Psihudakis told Bonomi he was doing this because 'Chase won’t provide a mortgage to anyone within three years of retirement,' the complaint said. The bank ultimately offered Bonomi a $3,850,000 loan, according to the suit. He made monthly payments of $21,053 from November 2021 until September 2024. Demolition of the home was completed in March 2025, which Bonomi alleged cost him $250,000. And in May 2025 a court upheld the town of Wellfleet's right to deny Bonomi a permit for revetment, a process used to protect earth from erosion. Retired lawyer John G Bonomi Jr, 66, purchased the home in 2021 but has now sued lender JPMorgan Chase, claiming he was not mentally stable enough to enter into the loan agreement Bonomi went through with the sale despite the well-publicized reports about catastrophic erosion threatening the home The lawyer, who claims the property is not salvageable, filed a lawsuit against the bank in October last year. He has demanded a jury trial and hopes to see the remainder of his mortgage written off. Bonomi, who was diagnosed with Bipolar I Disorder in 2009, claims he was suffering from an extreme manic episode at the time he purchased the home.  He alleged the episode was triggered by his then-employer of more than 20 years, accounting firm Deloitte, forcing him into early retirement, the complaint said. He claimed Blasch house was 'seductive' and became an 'irrational talisman for him' and that he put in an offer on the home without telling his family, friends or doctors. Bonomi's complaint states he was the only full-price bidder for the property, which he alleges demonstrates his unstable mental state. 'No rational person who did even casual due diligence, by running a Google search, would have considered purchasing the Property, and certainly not at the full asking price,' the suit said. It also alleged that Chase was 'aware, or willfully avoided acknowledging, that Plaintiff was not at that time competent to enter into the Mortgage and Note.'  A man runs up a cliff at Lecount Hollow Beach, as a home sits high above on an eroding sand cliff, in Wellfleet, Massachusetts on July 18, 2019 Bonomi has accused the banking giant of taking 'unconscionable advantage of his condition' and claims it should not have lent his the funds to buy the house. Chase, in its response to the complaint, denied the allegations JPMorgan Chase initially moved to have Bonomi's suit dismissed, but in May this year answered the complaint. 'To the extent a response is required, Chase denies the allegations contained therein and leaves Plaintiff to his proofs,' the filing said. Despite the mansion being in Massachusetts, the legal proceedings are being held in New York state, where Bonomi lives and entered into the mortgage agreement. There is legal precedent in New York for contract invalidation on the basis of a mental health condition, The Boston Globe reported. But experts warn that he faces a 'difficult burden of proof' to demonstrate not only that he had a 'mental defect that prevented acting in a reasonable manner' but that Chase was aware of it. The Daily Mail has approached Bonomi, JPMorgan Chase and Psihudakis for comment. Psihudakis is not named as defendant in the case. He has not worked at Chase since July 2024, according to his LinkedIn profile.