Yes, a view of the cemetary affects the perceived value of the home. If you had a choice between a view of the ocean, a view of a mountain, or a view of a cemetary; which one would you choose? Which view do you think most buyers would choose?
Before getting involved in this property, would you consider meeting with a local realtor who might be able to help you in so many ways?
If not, please consult an attorney who can at least find out about the pending lawsuit for you.
also put a time frame on the offer--like 5 business days--treat this like you have plenty of other housing options, which you do with all the distressed properties and the bank will tkae your bid seriously--the snow is ready to fly and vacant properties are killers to banks--