Deaths in a house I want to purchase

[Monica Litster]

I am looking at buying a house being foreclosed. It is in a desirable neighborhood, the worst street in the neighborhood, and definately the worst house.
The asking is $300k, but they are dreaming. Nice, rehabbed houses on the same street are selling for $340ish. I am thinking going in $200K, maybe less.
I went by and spoke with a neighbor. The father shot himself 3 years ago in the back yard, and the son hung himself in the basement a year ago. That explains a lot of the chaos on the house. Dirty dishes on the counter, food in the fridge, kitty litter everywhere. Pretty gross, but in my mind, the grosser the better.

My questions: How are houses with deaths like this marketed/sold/disclosed? What kind of discount should I expect to get on the purchase price? As a purchaser, what advantages can I take advantage of, 1)because it is a foreclosure and 2) because of the suicides? How can I benefit from this situation at this point?

It is being sold by a finance company. I know for a fact that there is $31,800 outstanding on the mortgage.

Any thoughts? Many thanks in advance.