The house was part of a development built by a Mr. Wood. (Hence, the name Loiswood Drive, and the other streets in the development that end in "wood"--Hollywood, Elmwood, etc.) The neighbors occasionally made funny remarks about the house that didn't quite make sense to the Crosleys. All they knew was that they had bought the house new from Mr. Wood.
Or so they thought. The house Lewis Crosley and his wife bought was originally built by Mr. Wood for his mistress. Then he found his mistress in bed with one of his drivers.
He threw her out of the house. She packed up and left, but on her way out she took a hatchet to the walls. Wood's workers apparently did an excellent job of repairing the damage; the Crosleys thought the house had never been lived in. Incidental to this, Wood had planned on putting in a pool. This explained the larger-than-necessary water service put in for the property, on which they blamed their high water bills. The water bills aside, the story was always a source of great amusement for them.
--Mike