When we bought our home in 1996, we thought we did everything right. Our agent is a well-known local Realtor with whom we had previous transactions. We got a termite inspection and a professional building inspection. But three weeks after we moved in, we removed glued mirrors from a wall and found large holes right through the wood in the wall. It was subterranean termite damage that the sellers, a retired couple who lived in the house over 30 years, failed to disclose to us. We learned they had a termite inspection in 1991, so they knew about the termites in the walls, plus dry-rot damage. The termites were getting their water from a chimney water leak.

A--Your situation shows how difficult it can be to (1) prove the sellers knew of an undisclosed defect and (2) receive payment for your damages, especially when the sellers have moved out of state. But I'm very surprised your termite inspector didn't discover the infestation at the time you bought the house. If your inspector missed the evidence of termites, then your recourse is against that firm.

A similar situation happened to me a few years ago and I had no trouble getting payment from the termite inspection company. Although the $7,000 you spent on repairs is not insignificant, it isn't a huge amount. I've seen homes with up to $30,000 of termite damage repair costs. At this point, considering the modest amount involved, my recommendation is to cut your loss and forget it. Since you have apparently solved the problem, but at your expense, I would drop the matter. Even if you sued the sellers and got a judgment, collecting it is an additional hurdle. Your attorney can advise further on the legal aspects.