Deceased uncle's home foreclosed on. I am next of kin and have questions.

[Brandon Dwight]

Hi,

My uncle (blood-related) owned a home in southern Massachusetts. He passed away two years ago and his wife (whom he may or may not have been legally married) was residing in the house. We are not at odds, but we are not close. She never notified us when my uncle passed and had a small service without the remainder of the family knowing. She has some addiction issues and we just let it pass. We've not been in touch since. To our knowledge, he did not have a will. 

Today we were notified that his home was foreclosed on and went to auction. The final judgment amount is $182K, and the foreclosure sale price was $385K, leaving a surplus of $175K. (No sure why the math does not make sense here)

I am next of kin and since he had no will and did not leave the property to his wife/partner, by law I am to receive these funds.

Today I have been contacted by a person from Rapid Surplus Refund and have been asked to sign a doc agreeing that I will take the surplus and give them a 25% cut of the $175K. 

My questions are:

1) Why wasn't I notified that the house was going into foreclosure? 
2) If I take the money will I be taxed on it and if so at what rate? (If I take the money it will be distributed to my sister and my mom)
3) Do I have any legal right to stop the sale of the foreclosure and take ownership? It would make a great rental.
4) Morally, I feel like my aunt (by marriage to my uncle) should be entitled to the money (sadly, she is just going to use it all on drugs and alcohol.) Can I sign this whole deal over to her?
5) What am I overlooking here?

Thank you all and happy holidays!
- Brandon