Moisture damage in bank owned property?

[Regina Jones]

I'm looking at a property that has a renovated garage to an In-Law apartment.  Upon looking at the property, I noitice that the whole in-Law apartment baseboard up to knee level have been carved out down to the insulation. We inquired about the issue and was told that it was just from the moisture? humidifier and not from water damage.  Property is located in a great neighborhood.  This is a bankowned property. Please advise