Mrs. Walsh was the wife of Mike, who was kidnapped by the Carrigans.
One night, while Mike was dressed up as Santa and preparing the presents for the children, he was ruthlessly pulled up the chimney by an unseen assailant.
Mrs. Walsh and her daughter were woken by the sound, but found no signs of Mike.
Sam and Dean Winchester, disguised as FBI agents, come to investigate the following morning and ask Mrs. Walsh questions. She says there were no signs of forced entry and her parents, who live in Florida, are the only other people who have a key to the house.
As Sam and Dean turn to leave, Mrs. Walsh tells them that the police suspect kidnapping, but she worries why there has been no call for ransom. Sam and Dean can only apologize.