This kind of situation might be worth a consultation with a real estate attorney in your area. Real estate laws vary by state and how and when things are recorded can make a difference. This may be a situation where the property won't sell at auction and will become an REO, If you are truly interested, you might want that attorney or an agent working for you to step in when the time is right.

You know, I'm not very squeamish. I bought a house where a suicide occurred.

But this would be a problem for me unless you KNOW the husband is in for life. He could be back to visit if he gets out. They would have to be giving it away and I would have a very good alarm system installed.

As noted above, check with a lawyer in your area on the sale aspects. Also, the lawyer should be able to tell you of any "stigma" notification requirements. In our jurisdiction, listing agents are required to note on any listings and offers such details if known. There's even a local website that lists "stigma" properties.

For instance, in the home below, eleven years ago, a car drove up the driveway; one man in the car shot the other dead, jumped out, ran up to the house smashing the front door sidelight to get in. Confronting the terrified homeowner, who had never seen him before, he turned his gun on himself, committing suicide. A couple of years later, a murdered woman was found in a car on the street in front of the house. Very upscale area, ripe for a teardown reasonably listed at $1.695. Would you be deterred?

From a longer perspective, this whole planet might be listed as a "stigma" to be avoided or wiped clean for a remake.

The man apparently took out a $108K home equity loan on the property
before the murder/arson took place. If I buy this property, am I liable
for the home equity loan, or just the back taxes?

Talk to a real-estate lawyer from that state, and check the property for liens. The loan was probably written off or paid off by the insurance company, BUT ... you never know.

Cleaning up that derelict would be great for the area.

Usually the home equity loan would be paid off at the time of purchase by the title company who was doing all of the paperwork, and a title company would do a search for any liens and guarantee a clean title. The auction documents should reveal liens. Depending on how the auction works, you might owe the auction price plus the liens, or the liens may be paid out of the sale proceeds. You may be able to ask a title company to do a search so you have outside confirmation of any other liens, or they may be searchable at the county office.

If you buy, you might be able to ask the city/county to have the address changed if there are any unused address numbers for that section of road. (Meaning not all sequential numbers have been used) so that an address search does not bring up the negative history.

A friend of ours bought a house after a suicide. The house was on the market longer, and the price was lower than other houses that were similar. Nothing creepy happened while they lived there. I am not sure I would have bought it.

I think a prior owner of my house may have died of cancer here. I did not specifically ask. But I know he died while he owned the house. It was 2 owners ago.

lafdr

A nearby home under renovation was listed last week for $1,850,00. I was sorely tempted to make an offer for land value only as it had been the site of a grisly murder/dismemberment earlier this year and I thought this would deter buyers. (My daughter happened to be driving by when she saw forensics officers carrying out four of the five bag total.)

It sold instantly for $2,120,000.

well my current home was previously owned by a couple, he committed suicide (but not on the property) and just less than two years later my husband died of cancer (but not on the property). I doubt anyone would have a problem purchasing this place.

new-beginning-

I agree it shouldn't be an issue, but you might be surprised at how many superstitious people are out there who wouldn't buy your house if they knew the history. These threads might be eye-openers for you:

Do you believe some houses have bad energy?

Would you buy a house near a cemetery?

Worthy, that house looks hideous from the exterior. I'm guessing it got bought for the notoriety. A house with a history like that will scare most off, but often... there's someone.

A house with a history like that will scare most off

I thought that too. But it went for $270,000 over list! I can't imagine it not being torn down.

But there was a least one Toronto double murder home--where loan shark/enforcer Ian Rosenberg and his girlfriend Joan Lipson were dispatched by .45 slugs to their heads while sleeping--that was sold and renoed by the new owners.

One house I lived in ... the original owner died in the room I used as a bedroom.

No problem.