Major Septic Issue on Flip House

[Devin P.]

I purchased a foreclosure home to flip that was built in 2003. We are 1 month into the reno. The seller was Secretary of Agriculture so I assumed the house was foreclosed from a govt backed loan such as a FHA, VA, or USDA loan. That being said, the seller had riser caps installed on the septic and well prior to the sale of the house. I called the person who installed those risers who does class H inspections, and he stated that when he searched that property to install the risers, that there was no permit on file for the septic system. If I did an inspection and the system failed, it would not be able to be repaired due to not having an original permit. My question, which I'm awaiting to hear back from the listing agent how this person even got a loan without having a class H inspection on the septic. It just seems outrageous that I'm now quite possibly having to replace the entire septic. I have moved forward with having the soil tested in prep for replacing the entire system, but Im just wondering if anyone has any other suggestions or scenarios they could offer for my situation.