My wife and I recently purchased a home as well. In Michigan, though. From what you've written, there was definatly a cover-up as to how well the house was built. The sellers, by law, need to disclose this information. Usually something this big is picked up by the inspector, and the whole deal is called off. Unfortunatly, you now own the house. The best bet would to invest in a lawyer. DO NOT spend 20k repairing the house. I know it's tempting, but you should really handle it correctly. Hire a good lawyer. I know at least one is out there.