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I was wandering around Skingrad when I decided to practice lock picking on Nerastarel's house.
Once I managed to break in I was greeted by some wraiths on all three floors. I managed to beat them all by myself. Cleared out the place and left not wondering too much about it.
A while later, I went back to the house, let myself in and was met by some Nether Lich's and Gloom Wraiths!!!
They were a bit strong for my wood-elf, so I quickly exited out the door and they followed me!
Before my wood-elf, the combined guards and sundry passing citizens could bring them down, they killed two town guards (one had a guard key on him), Foul ***us and a passing citizen Valandrus Abor.
Two of the guards started fighting each other and the last I saw of them, one was chasing the other into the Weald. :laugh:
Now I gather Foul ***us is needed for a Thieves Guild quest so it may not be a good idea having him dead. I could go back to a previous save but I'm not too sure I will do that Guild anyway.
Does the other guy Valandrus Abor matter? He had a nice blue outfit on and a stack of gold.
The big question is what will be in the house next time!!

Well as far as Abor goes, according to the TES CS he is not a quest related character and is not essential so you don't have to reload as far as he is concirned.

Per the sticky thread at the top of the forum, please do not post spoilers like this without the appropriate spoiler tag in your thread title. I'll change this one. Future ones could easily vanish.

In the house next time...

Like all creature encounters in Oblivion, the higher your level then the higher the encountered creature's level. So, assuming you continue to adventure and increase level, the monsters in the house will progress to match accordingly. As it seems the monsters in this house re-spawn at some interval, I expect if you wait a few days they'll be back to give you a challenge. The undead creatures don't get much tougher than the one's you recently encountered. It'll basically be the same monster, with higher health points.

SPOILERS! The Begger Is.....

.....quest related! If you do the "Speechcraft Master Trainer" quest, Tandilwe requires you to meet and help every begger before she'll train you. If a begger dies during said quest, she refuses to train you!

Plus, during certain Thieves Guild quests, the beggars are your tip givers! If your tip giver is dead, then you have to figure it our on your own.

Anyway, as for the house, once cleared, I use it as a free house. But as I don't stay there endlessly, I don't know if it becomes haunted again eventually once I leave.

I hope that helps!

Notice, however, a propos the Master Speechcraft Trainer's quest:

Killing the beggars before the quest is issued is perfectly fine; you do not need to talk to those dead beggars to complete this quest.

SPOILERS! The Begger Is.....

Ah, I've read that before, but it seems so awful!

Oddly enough, I just completed that quest yesterday. It's a glitched one for me, for even though I'd talked to every begger, she still wouldn't train me! Well, my character. So I had to use "SetStageQuest". Contrast to the previous character, who incidently talked to everyone before, then she approached Tandilwe, Tandilwe trained her on the spot, because the prerequite was already done! I thought I'd done the same thing this time too.
Didn't work. So I spawned the beggars, one at a time, just outside the temple. Enaged them, then disable them. Didn't work. Hence my using the cheat code eventually. This quest and Molag Bal, are the two most often glitched for me. More than once that poor paladin has killed himself trying to kill my character, who is standing there naked, letting him whack on her like a punching bag, only for him to die from exhaustion! :speech: