Serious Termite Problem-Options

[Naga A.]

Ok. I put a property under contract from a wholesaler "as is" and no inspection contingency (but no major defect warranty) and paid $1000 EMD. When I walked the property with my contractor the second time, we found a serious termite issue in the walls. We did not find this when we walked for the first time and before paying the EMD.

Attached are the links of the termite pictures.

It's behind the wall paper in the kitchen, all long the base board trim throughout the house, & on the built in cabinets in the back room.

With this much damage we don't know what we'll find once we start demoing things. They could still be in the walls and behind the cabinets. I did not budget this. This is supposed to be a rental property so I cannot afford to go over budget too much.

The wholesaler did not disclose any termite problem.

What are my options? As much as I hate backing out of deal and hurting my reputation as a buyer, with this much extent of damages, I would think backing out of a deal is the best course of action. I am not a rehabber and my experience in RE is limited.

What are my options? If I back out of the contract, can I claim my $1000 EMD back using the no defect warranty?

With this much damage we don't know what we'll find once we start demoing things. They could still be in the walls and behind the cabinets. Getting a termite guy out there would be the best bet.

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