Need Help with Foundation on a deal

[David Griffey]

Need help with a house that the inspector says that I need a foundation engineer to look at. This will cost me another $400 to do. This house is a bi-level and is about 1100 sq ft upstairs and has a finished basement with a two car garage. The downstairs flooded so it has mold, but I planned on ripping most of it out if I kept it. I had already figured about $35000 to $40000 to fix up and my guess at min it would sell for $100,000. They are asking $30000. I know nothing about foundations but I really don't see any cracks in the poured foundation. The inspector said it should be dozed. I need some help on what everyone thinks. This will be my first deal. I have not called the owner to tell them yet. I think it being dozed is an extreme comment, but that is why I am asking for advice. Any help will be greatly appreciated. It also has termites and was built in 1970.