He requested a $5.5 million loan to buy his dream house — then sued the bank for agreeing

We've all heard stories about people making outrageous, late-night impulse purchases like a pair of designer shoes or an overpriced gadget, only to regret their decision the next day. However, retired New York attorney John G. Bonomi Jr. took buyer's remorse to a whole new level when he bought a $5.5 million waterfront mansion in Wellfleet, Massachusetts. He had fallen in love with the property, even though it was precariously perched on a rapidly eroding bluff above Cape Cod Bay. What happened next was truly astonishing, as reported by The Boston Globe on July 16, 2026.

A high-risk purchase

The story started in November 2021, when Bonomi finalized the purchase of a 5,000 square-foot-plus luxury home at 1440 Chequessett Neck Road, Wellfleet, MA 02667, for $5.5 million. He financed the deal through JPMorgan Chase with a $3.85 million mortgage. By 2024, a site assessment by Bryan McCormack (WHOI Sea Grant and Cape Cod Cooperative Extension coastal processes specialist) and requested by the Town of Wellfleet found that the bluff had receded 54 feet in just 10 years. The assessment estimated that, in a best-case scenario, the home might remain viable for another three to five years. But given the rate of erosion, the specialist believed it could be lost much sooner — potentially within the next year. 

Waves claim the land

Nonetheless, here's where things get interesting. Over the following years, severe storms and ongoing coastal erosion continued eating away at the bluff. By 2024, the shoreline had receded 54 feet in a decade, and the home's deck was hanging over the edge. Local officials in Wellfleet flagged the structure as a severe public safety hazard as the deck and framing were left practically hanging over open water. 

Demolition before collapse

With the town warning that a collapse could send debris into the bay and nearby oyster farms, the mansion was finally demolished in February 2025—15 years after construction—at an estimated cost of more than $1 million, as per WHOI Sea Grant. Although this was the end of his house, the plot was thickening. Following the demolition, Bonomi filed a federal lawsuit not against the owner who sold him the house, but against JPMorgan Chase. 

Manic episode drives deal

He claimed that in the months leading up to the purchase, he was dealing with a severe manic episode linked to his Bipolar I disorder. "Plaintiff was acting under an uncontrollable manic psychosis at the time he entered into the Mortgage and Note," the suit, filed in October of 2025, reads. He alleges that this acute psychological state impaired his judgment and drove him to make an irrational financial commitment and that Chase should have recognized that he was not mentally competent to enter into the mortgage agreement.

The mental health impact

While the court will decide whether Bonomi will get his money back or not, studies show that people with bipolar disorder have difficulties with money and overspending. In fact, according to a survey by Dr. Thomas Richardson, Associate Professor of Clinical Psychology & CBT at the University of Southampton, for the Money and Mental Health Policy Institute, 88% of individuals suffering from bipolar disorder report that their mental illness directly compromised their financial situation, often driving reckless spending sprees, unvetted loans, and irrational investments during manic episodes. Furthermore, 91% noted that the resulting financial strain significantly worsened their mental state. 

Battle reaches federal court

Through his suit, he asked JPMorgan Chase to void the remaining balance on his $3.85 million mortgage as well as seek damages. His legal team argues that, because he lacked legal capacity due to a "severe manic state" when signing the loan agreement, it should be declared null and void. The complaint asserts that Chase failed in its fiduciary duty by advancing funds on a doomed property to an incapacitated borrower, as the battle continues to rage on. 

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