Oh! It hit me, I have some more info....
The deserted town was not really a town after all, it was really a graveyard or underneath it was a graveyard. There were all of these monsters/demons living/hiding out there. In particular, a mother (who looked like a gypsy-with a thick accent) and a daughter; the daughter was playing outside one day, got caught in the sun and due to her almost dying, she started to turn into her other "form"- she looked like some kind of dog/cat crying in pain. They saved her by running out into the sunshine just in time and brought her back into the shadows. There were other types of monsters there, too, but again, the name of the town would help with the title. I don't think it was a werewolf or vampire movie, but remembering that scene, now I am not so sure...

Does this sound familiar to anyone?!