Letdown/Blessing

Yesterday morning, Sonny and I woke up with a feeling that we needed to go by our "new" house to check it out. There was a drainage issue with the basement when we had all that snow, and I was wondering if there was mold in the basement. So we drove down there. We walked into the house and heard dripping water: the breakfast nook had a waterfall coming down just to the right of the light fixture. I ran downstairs, praying that my suspicions were unfounded. Luckily I was wearing my galoshes. There was about an inch and a half of standing water in the basement. I wanted to cry. The small drainage issue that we thought could be corrected in a Saturday afternoon was clearly more severe than we anticipated. Mold had started to form on the studs and the insulation and stucco was wet by the side entrance. Unless they come down 40k on the house so that we can fix it, we are walking away.
I am so disappointed, since I was a few weeks away from painting, decorating and accessorizing my first home. However, we both agree that this was a blessing because we found out before it was too late. Everything has been stopped--the mortgage, the appraisal--everything. We are back to square one. However, hopefully now we can find the perfect little house.
We are just praying hard to find the right place now with the little scrap of time we have left.