If the seller is still occupying the property and has not disclosed the flood, I would walk out. What else has he not discloed?? However if the property disclosure does not have anything written in it, like banks usually do, then?investigate what caused the flood and how was the property treated after that flood.? Mold would be a serious issue.? Even if you proceed with the sale make it contingent upon mold inspection.?
Source: http://www.zillow.com/advice-thread/Concerns-about-buying-a-house-that-has-been-flooded/471145/
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