Later that afternoon, Paul is badgering Mrs. Oxenham for help in locating his grandfather. Jamie and Morse are playing checkers. The Girl enters and begins to complain about the lack of hot water; she finally realizes that Katz has no intention of fixing the hot water.
Jamie and Morse fight about the checker game. It escalates into a physical brawl. After Morse hides in the closet out of embarrassment, Jamie feigns injuries to lure Morse from the closet.
Jackie enters, complaining that all the pawnshops in town are closed. The Girl asks Paul about his grandfather and learns that he has spent two years on a work farm for selling drugs.
Meanwhile, Jackie brags about the land she bought from a radio ad and about the organic food she is going to grow. The other residents realize that she has been conned. Millie talks about her childhood home.
Morse announces that he has been robbed—all his wife’s jewelry is missing. The residents realize that Jackie is the thief and Katz tells her that she must leave immediately or he will have her arrested.
Millie informs Paul that she is sure his grandfather is still alive.