The Tobe Hooper directed MORTUARY reminded me a lot of his recent THE TOOLBOX MURDERS combined with EATEN ALIVE. Denise Crosby (STNG) portrays a mother who moves across country with her teenage son and young daughter in order to start her new career as a mortician. To say that the old mortuary they are taking over is run-down is an understatement. In fact, not only is their septic overflowing but their front yard is actually the old town cemetary.
Almost immediately they hear the stories of the deformed young boy who used to live in the house, who disappeared and then presumably killed his parents ten years later. He is rumored to still be around, living in the cemetery. This turns out to be true, as he lives deep in the gravesite's only underground vault. Down here is where there is also this strange, black fungus like substance, a substance which can possess you and even reanimate the dead. Some of the local kids are first to be possessed, then Crosby herself becomes one of its minions. The special effecst are gruesome and the story surprisingly depressing, though it has its absurd moments. I saw this first on the Sci-Fi Channel, so I'm sure the uncut version is more bloody (or fungus-y).