completed production in early 2006, and was released on July 21, 2006 by Columbia Pictures.
A preteen boy, D.J. Walters (Mitchel Musso), spends a lot of his free time spying on the house across the street and its owner, Mr. Nebbercracker (Steve Buscemi), a crotchety old man who terrorizes anyone who steps anywhere on his lawn or close to his house. DJ has seen and documented Nebbercracker taking toys from kids that have stepped in his grounds. His parents (Catherine O'Hara and Fred Willard), dismiss his comments as "kid talk" and leave town for the weekend, during which he is to be cared by Elizabeth or "Zee" (Maggie Gyllenhaal), DJ's apathetic babysitter. When Charles "Chowder" (Sam Lerner), DJ's best friend, loses his basketball on Nebbercracker's lawn, DJ ventures there to recover it, but Nebbercracker appears and grabs DJ, who then starts screaming. This causes him to collapse from a stroke, seemingly dead. While Nebbercracker is carried away by the paramedics, a gold key is dropped, which DJ scoops up. That night, DJ gets a call from Nebbercracker's house (which was just eerie moaning from the other end). He calls Chowder and they agree to meet at a construction lot. There, they decide to investigate the house. When Chowder tries to ding-dong-ditch the house, it comes to life and attempts to eat him. They run back to DJ's house and spend the night watching across the street. Unknown to them, Zee's boyfriend, Bones (Jason Lee), has already been "swallowed" by the house.
As they flee from the now-walking house, they run to the construction lot. A chase ensues, during which Nebbercracker tries and fails to throw a stick of dynamite into the house. Jenny kisses DJ good luck; getting courage, DJ takes the dynamite and climbs to the top of a crane. He swings with the crane cable and throws the dynamite down the chimney, where it reaches the furnace and destroys the house completely. The kids see Nebbercracker dancing with the spirit of Constance as he lets go of her and she fades away. DJ apologizes to him and Nebbercracker thanks him for freeing him and Constance after 45 years of being "trapped."
The film ends with the kids returning to the hole where the house was, and Chowder, DJ, and Jenny helping Nebbercracker return all the toys. During the credits, it is shown that everyone that was eaten by the house crawls out of the basement bewildered but unharmed.