Well, this would really not the first time this happens.
First of all our advice or suggestions here cannot be very exact and detailed simply because
we do not know the home and we do not know the sales contract, nor the disclosures connect to such contract.
A few questions though for you,
a) did you have an inspection and if so did the inspector see any problem?
what exactly does the inspection report say
b) what does it say in the disclosure by the seller, did they have problems, did they live themselves
in the home etc. etc.
c) Did you buy the home in as is condition?
So since we do not know any of the answers hard to tell what your situation may be.
d) Does you home insurance cover water damage?
And YES you do need to talk to a local real estate attorney, I think it will be simple if you go to
google and you google for real estate attorneys in your area, I am sure several will turn up.
or use this link to find a real estate attorney near you this way
Most Sincerely yours,
Working always in the very BEST interest of her clients with @Properties