I spoke to that Argonian in Skingrad castle who give you the "quest" to buy a house in Skingrad.
She told me to speak to Shum Gro-Yarug. I did not bother with house in Skingrad then, so i did some other quests.
When i decided to try buying this house three days later (in game) i found Shum Gro-Yarug dead under the bridge to castle Skingrad!

What is this? A bug?
I have not pushed him off the bridge!

Yup known bug, he often takes swan dives off the bridge.

Yup. If you're on PC, open the console, click on Shum Gro-Yarug and enter resurrect. Otherwise, load a prior save.

From the UESP Wiki:

"Bugs

Shum will occasionally fall off the bridge to Castle Skingrad and die. PC players who need him for either of his related quests can resurrect him with the following set of Console commands:

prid 0002C466
resurrect 1
enable

Xbox 360 and PS3 users afflicted with this bug cannot fix it and will be unable to buy Rosethorn Hall. Although the problem is not common, it may be wise to deal with Shum as early as possible. Also, spending less time in Skingrad and the surrounding area reduces the chances of Shum falling off the bridge. Using multiple saves is always recommended. You could also spend your time in Skingrad during night time to avoid him falling over the bridge.

This bug is fixed by the Unofficial Oblivion Patch"

Shum Gro-Yarug got tired of running the "orc social club" so he swan dived off

Too bad then. I saved when i did'nt knew he was dead. I'll better buy some other houses then.
Thanks for the help!

Give the uninhabited caves and mines a try.

Buy the next best unmodded house Arborwatch in Chorrol.

It's rather sad that someone who does not work for Bethesda had produced a fix for a known bug (which has happened in each of my games, rare my [censored]!), but Bethesda has not seen fit to take a little time and fix it. it has to be within the first ten or twenty feet outside the castle, maybe make sure everyone appears above the bridge when they spawn outside the castle. Unfortunatly, TES CS is on my other system, which is down, and this one won't run it.

Ouch, that svcks. The house (Rosenthorn Hall) in Skingrad is my favourite.
It has a little secret that really appeals to me.

Maybe in the spot just outside the eastern gate where the game is glitched and you drop through? Didn't kill me, but the fall did hurt.

Another question re the Skingrad house, which I just bought (and I must say the livin' is fine): Are all containers safe?

i believe so.

IIRC all containers in all the houses you can buy in the vanilla game are safe. That may not be true for houses added by mods, and it's not the case for other free accommodation like you might get as head of a guild, where containers are a mixture of safe and unsafe.

He forgot the bungie cord.

Happened to me too, I thought a guard was passing by and "accidently" pushed him off.

This still makes me angry...I've completed every other quest but the ones with this damn house.

I played it once on PC and got the house so i've seen the house...but still...I REALLY want everything done

Hey Bethesda programers...if anybody wants to make 500 bucks in an afternoon, come up with a way to fix this...

Closed to prevent further thread necromancy.