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In a lease-option and discovered home has severe foundation damage the owner wont fix. Can I get deposit back?

Entered lease-option agreement giving down payment of 3x the rent in August 2007. The home did not pass inspection until mid February 2008 due to owner not making necessary repairs and technically was un-inhabitable but I made on time monthly payments. In March I noticed a large crack in the basement wall that was painted over and water leaked into the basement with each rain. I immediately notified the owner via email and he promised to have a professional waterproofing company come to make repairs yet he never called back. After a week of heavy rains in May, the entire basement flooded. I notified the owner again he sent a carpenter out to home to install a sump pump. The carpenter dug a hole in the basement 3x times the size needeed to install the sump pump, left and never came back to finish the repairs. For almost a month now, the hole has been in the basement and the owner wont fix correctly. Estimated repair costs $5000+. I don't want to purchase home can I get deposit back?

Public Comments

1. I have no idea BUT I never would have moved in if the inspection was not up to par. Even if you decided to move forward giving the owner the benefit fo the down I would not have provided a down/payment it would have been a straight rental until the home passed inspection. Hindsight is 20/20. You might have to cut your losses and walk away from this one.
2. You need to check your lease to see what it says about repairs and what the timeline for those repairs are. When you are purchasing, chances are the timeline shrinks, leaving you responsible. However, if you can prove that the damages where present and reported with in the timeline, they are 100% responsible. If you are able to find out who their mortgage is thru and report them, the mortgage company can perform an audit inspection. Once they see the damages, the owner will be in default (more than likely) of the contract with the mortgage company and will be required to have the house repaired.
3. ask him to have his insurance company call you or YOU have your own insurance company get to work.......... or if the insurance is vague, you really have a problem. I will help as much as I can if you need more.