PRIOR contacting an attorney review the docs. READ OVER every document you signed purchasing there are probably 100's of page
Banks formal excecuted contracts may waive the right for you to sue, when you purchased the property. It could save you some money when you speak with an attorney. A legal professional most likely will request for all documents pretaining purchase of the home. The attorney will charge $300 - or + per hour. All bank foreclosures are sold as is ... We have closed numerous foreclosures which the buyer signed their rights to sue. If you locate any statements regarding your rights ask your agent assist you in understanding of the documents. HOWEVER in some states professionals can't comment on a legal document unless they published contract
Seller disclosures are not signed by a bank they never occupied the property have cant furnish any statements.
Sorry to hear everything that has taken place.
While you signed many releases during the purchase of the property from the BANK, you may still have a cause of action. The BANK will most likely claim they knew nothing about the problem and this is probably true - the old owner just walked away and informed no one about the problem. Assuming this is the case I would bet the BANK would prevail on this one but without checking you will never know.
This is a good example of why REO's are not necessarily the best deals in town. There is no way a regular property or pest inspection would have found this issue either.
Best of luck and let us know what the attorney says, yes?!