The third episode of 'American Horror Story: Roanoke' has arrived and we finally learn the story behind the violent haunting of Shelby and Matt's North Carolina farmhouse. However, little Flora is still missing and things are getting personal. You'd think it would be time to leave the area, but these characters are made of sturdier stuff.

American Horror StoryAmerican Horror Story: Roanoke

Episode one introduced this season's concept: 'My Roanake Nightmare'. It's basically a televised documentary about Shelby and Matt's paranormal experiences where they are played by Lily Rabe and Andre Holland in the interview segments and Sarah Paulson and Cuba Gooding Jr. in the reenactments. Angela Bassett plays Matt's ex-cop sister Lee. 

As soon as the couple arrived at the house, things got scary. If it wasn't the local hillbillies tormenting them it was terrifying spirits of the deceased, dead pigs and snuff videos. By Chapter two we learn just what they are dealing with. These are the spirits of the lost Roanoke colony led by Kathy Bates, with Lady GaGa as her closest companion, who enjoy performing ritual human sacrifices. By the end, Lee's daughter Flora has gone missing with no clue left behind other than what her 'imaginary' friend Priscilla told her; that they were going to kill everyone and leave her 'til last.

Police are no closer to finding Flora by Chapter 3, but Matt, Shelby and Lee do come across a few clues. A pigtail and pieces of Flora's doll, and more doll parts in a dilapidated farmhouse nearby. But that's not the creepiest bit; they also find two boys suckling on a dead cow in the barn, but the only thing they seem able to say is 'Croatoan'. Police trace the owners of the house to the dodgy hillbillies that Matt and Shelby outbid on their house, and so they are now the prime suspects.

It doesn't help matters that Flora wasn't supposed to be there anyway; Lee basically kidnapped her from her ex-husband Mason and now that he's found out that she's gone missing and is in serious danger, he's understandably mad. He's not angry for very long though because his body is soon discovered in the woods badly burned. If that wasn't bad enough, Matt and Shelby check out the security footage at their home and discover that Lee had left not long after Mason and didn't come back for 4 hours. Of course, she denies any wrongdoing.

More: Read our recap of 'American Horror Story: Roanoke' Chapter Two

Then we are introduced to the medium Cricket Marlowe, who wants to help them find Flora for a flat fee of $25,000. He seems legit, though he does manage to incite the fury of Kathy Bates' character 'The Butcher'. As for that background, her real name is Thomasin and led the Roanoke colony in the 1500s on behalf of her absent husband. She ended up getting shunned from the community, but made her way back by doing a deal with a nymph (aka Lady Gaga) and selling her soul. She then moved the colony to the land that Shelby and Matt's house now rests.

Cricket makes a deal with Thomasin; in exchange for her help finding Flora, they will burn down the farmhouse and leave the area for good. That would be a neat ending to the episode, right? But then Matt goes missing and when Shelby finds him he's making love to Lady Gaga in front of two hillbillies who are err... rather enjoying the show. Only thing is, he doesn't remember anything about it later, by Shelby has already angrily reported Lee to the police with the security footage evidence.