WAY TOO MUCH IS UNKNOWN.
Did you buy a foreclosure?
Did you buy a short sale?
Did you buy a flipped home?
Was the home occupied by the owner prior to sale?
Was home sold "AS IS."
Was the failure OBVIOUS to the inspector you hired?
Did you have an inspection for WDO?
DID THIS owner experience the termine damage?
DID THIS owner have the termite damage repaired?
DID THIS owner indicate such in the disclosure?
Now a decision can be made.