Hsp90 Inhibitor AUY922 and Erlotinib Hydrochloride in Treating Patients With Stage IIIB-IV Non-Small Cell Lung Cancer

Inclusion Criteria: * All patients must have pathologic evidence of advanced lung adenocarcinoma (stage IIIB or stage IV) confirmed histologically/cytologically at NU, MSKCC, or DFCI and EITHER previous RECIST-defined response (CR or PR) to an EGFR-TKI (erlotinib or gefitinib) or an investigational EGFR TK inhibitor OR a documented mutation in the EGFR gene (G719X, exon 19 deletion, L858R, L861Q) * Radiographic progression by RECIST during treatment with erlotinib/gefitinib * Received treatment with erlotinib/gefitinib throughout the one month prior to enrollment and at least six months at any time * Measurable (RECIST) indicator lesion not previously irradiated * Must have undergone a biopsy after the development of acquired resistance * Karnofsky Performance Status \>= 70% OR ECOG/WHO Performance Status 0-1 * Signed informed consent * Effective contraception and negative serum pregnancy test obtained within two weeks prior to the first administration of AUY922 in all pre-menopausal women (ie., last menstrual period =\< 24 months ago) and women \< 2 years after onset of menopause; menopause is defined as the time at which fertility ceases, where a woman has had no menstruation for \> 24 months * Total bilirubin =\< 1.5 x Upper Limit of Normal (ULN) * AST/SGOT and ALT/SGPT =\< 3.0 x ULN, or =\< 5.0 x ULN if liver metastasis present * Absolute neutrophil count (ANC) \>= 1.5 x10\^9/L * Hemoglobin (Hgb) \>= 9g/dL * Platelets (plts) \>= 100 x 10\^9/L * Serum creatinine =\< 1.5 x ULN or 24 hour clearance \>= 50 mL/min Exclusion Criteria: * Symptomatic CNS metastases which are symptomatic and /or requiring escalating doses of steroids * Prior treatment with any HSP90 inhibitor compounds * Conventional chemotherapy, radiation or monoclonal antibodies within 4 weeks (erlotinib/gefitinib therapy within the past 4 weeks IS allowed) * Palliative radiation within 2 weeks * Unresolved diarrhea \>= CTCAE grade 2 * Pregnant or lactating women * Women of childbearing potential (WCBP) (i.e. women able to become pregnant) not using double-barrier methods of contraception (abstinence, oral contraceptives, intrauterine device or barrier method of contraception in conjunction with spermicidal jelly, or surgically sterile); male patients whose partners are WCBP not using double-barrier methods of contraception * Acute or chronic liver or renal disease * Other concurrent severe and/or uncontrolled medical conditions that could cause unacceptable safety risks or compromise compliance with the protocol * Major surgery =\< 2 weeks prior to randomization or who have not recovered from such therapy * History (or family history) of long QT syndrome * Mean QTc \>= 450 msec on baseline ECG * History of clinically manifested ischemic heart disease =\< 6 months prior to study start * History of heart failure or left ventricular (LV) dysfunction (LVEF =\< 45%) by MUGA or ECG * Clinically significant resting bradycardia (\< 50 beats per minute) * Clinically significant ECG abnormalities including 1 or more of the following: left bundle branch block (LBBB), right bundle branch block (RBBB) with left anterior hemi-block (LAHB); ST segment elevation or depression \> 1mm, or 2nd (Mobitz II), or 3rd degree AV block * History ventricular tachycardia * Other clinically significant heart disease including congestive heart failure (New York Heart Association class III/IV) or uncontrolled hypertension (\> 160/90 despite intensive medical management) * Patients who are currently receiving treatment with any medication which has a relative risk of prolonging the QTcF interval and cannot be switched or discontinued to an alternative drug prior to commencing AUY922 * Known diagnosis of HIV infection (HIV testing is not mandatory) * Patients with a history of another primary malignancy that is currently clinically significant or currently requires active intervention * Patients who are receiving warfarin (Coumadin®) will be excluded unless =\< 2 mg/d, with an INR \< 1.5 * Patients with known disorders due to a deficiency in bilirubin glucuronidation (e.g. Gilbert's syndrome)