Night of the Dark Full Moon (1974)

Wilford Butler returns home on Christmas Eve and his house had been turned into a mental institution for the criminally insane. But the day of his return, he is set on fire and dies. The towns people believe his death was an accident, and the institution-house is later closed down. Wilford leaves the house to his grandson Jeffrey. A few years later, Jeffrey finally decides to sell this grandfather's house, but the towns people including the Mayor have mixed feelings on keeping people away from the house, especially when a serial killer escapes from another institution and finds refuge there. The killer makes frightening phone calls and kills anyone coming near the house. But what does the killer have in common with what happened to Wilford Butler years before?