So my wife and I are new to real estate in general, both from an investing and personal home standpoint. We have come across an interesting house due to the fact that my aunt and uncle live across the street. In June the owner of this house was murdered there.  Her sister listed it for sale by owner and we toured it. She had an asking price of $75k. The house needs work, for sure some updating and probably a new garage (current detached, one stall is leaning quite a bit). We left it alone as this was far to much for the house's condition. The neighborhood is decent, not a ghetto or anything, and could support 80-90k if this house was remodeled/renovated. The house has since gone to foreclosure and the notice posted on the door indicates that the amount due is $20,016. 

Questions for your are:

1) Is it possible to buy this house prior to auction? Contact mortgage company or sister?

2) If bought at auction there is a 12 month redemption period (Michigan), can someone else redeem it other than the dead person? Maybe the sister?

3) Would you buy/rent a property that someone was murdered in?

Any general advice would be greatly appreciated.

Thanks,

Jake