Purchased home two years ago. Foundation is failing. Can we sue previous homeowners?

Nothing regarding faulty poor structural integrity/foundation was documented on any paperwork or verbally agreed upon during purchase. Home inspection at time of purchase did not address or raise concern with regards to this issue. I feel slightly cheated. We are first time home buyers. We're not out for blood, but is this ethical? Cold hard reality?
Thank you for any input
If you had a proof of misrepresentation by the seller,property manager,inspector etc you can file a suit against them.
Unless you can prove the defect existed at the time your home was inspected, you can't prove that the inspector is liable nor can you prove that the sellers knowingly misrepresented the property.
That's what the inspection is for. If your inspector didn't catch it, you're out of luck. Also, chances are that the previous homeowners had no idea about it. Homes are money pits - they are always needing something. . . . .
Yes.
Well, i was a real estate agent and although i never had the pleasure of going through an unsatisfied lawsuit. Typically, the homeowners take everyone to court. The home inspector, real estate agent, previous buyer, contractors, etc. Basically, anyone that had anything to do with that house. Then they just wait for the court to sort it out.

On my experience, i would point my investigation at the home inspector first. It could also turn out that there was absolutly no way to tell this was going to happen. If this was two years ago, it's very possible that this issue was hidden or did not develop untill after you purchased the house. In that case, yes, you're just sadly out of luck. It's a reality to buying a house. Things break, and sometimes you have no one to blame except the house. As for how to prevent this issue? Get a home warranty that covers this issue as well as many others. Buy a newer home that is warranted by the Contractor for up to 1 year (this is typically a law depending on your state) or higer a very, very informative home inspector.
BrandX is right. For two years you didn't know you had a bad foundation - very likely the previous owners didn't know either. Since even an inspection didn't find any sign of it, I'm afraid you need to chalk it up to 'stuff happens'.

Now, depending on the age of the home, you might be able to sue the builder. For example, in Arizona, the statute of limitations grants homeowners eight years to pursue a builder for home defects.


Answers:
I am an insurance adjuster.

If you haven't had the foundation professionally evaluated, you will need to do that, but keep track of the cost. You will need to do this whether you file suit or not, because it's your home. A structural engineer may also be a good idea. Don't rely on friends. These professionals need to be certified or licensed.

Next, find out why it's failing and what it will take to fix it. Be sure to get the estimated cost.

If you intend to go after the previous home owner and/or home inspector, you will want to take all your purchase information/ contract and have an attorney review it, to see if you have a claim.

Basically, you need to have all your information and research established and know what you are talking about before moving on something like this. If you don't, you may be embarrassed if you missed a clause or something and you have no claim.

I would refrain from making a claim with your insurance company as a failing foundation is usually not a covered occurrence.
Check the history of the the home through checkpoint.com and see if there were ever any claims against it. If there were, you have a case against the former homeowners and possibly the Realtor who sold you the home and although not likely maybe even the title company. If there is no previous claims, you should be able to submit it to your homeowners insurance (although you will likely need a lawyer because they almost always fight these cases) Good luck with it.....
I think the one you need to go after is the home inspector.How would the previous owners know that had a faulty foundation, they are not experts.Talk with a real estate attorney and find out your rights.
Usually the time limit is one (1) year after the date of purchase to report any defects or file suit. Check your state law to determine what the time limit is exactly. Having sold and bought many homes, some of which were less than perfect and required a little work after the fact, it is natural to feel cheated. In our society, we expect full, honest disclosure and when we feel cheated or sleighted, we want to be made whole. In Illinois, if you have knowledge of a defect, you are bound by law to disclose that defect. Otherwise, you are committing fraud. However, homeowners are not required by the law to investigate each and every potential flaw in order to provide disclosure. It is possible that the previous owners did not know the foundation was faulty - Sorry you are experiencing a difficult time - Good luck -