Non-Disclosure In NJ?

[JerseyG2G]

What is the name of your state? NJ

My husband and I closed on a property the second week of July. Seller was going through claiming partial bankruptcy after living in the house for over 30 years. The basement of the property had about a foot of water in it so we had a reputable company investigate the issue and give us an estimate for fixing the issue with the agreement/approval (by the trustee and bankruptcy judge) that the cost would come off the already negotiated price. Due to the amount of water in the basement the seller was asked exactly where the water typically came in from and he said "south wall only". With the rain we've had all this past week, well, we're flooded again with the water coming in from everywhere BUT the south wall.

Also, a neighbor stopped by about a week after we closed to inform us that the road was a private road, the township doesn't plow the snow or re-pave/stone (street is in horrible condition) and the reason for the street being in such disrepair is that the water run-off from all the development going on up-mountain flows right down to mid-mountain where we are and has deteriorated the road and caused yards and basements to flood.

We were not informed of any of this. Was the seller? Yes. He attended several township meetings with the neighbors on the street (neighbor told us) on top of the neighbor having personally informed the seller of the issues as he did us. The road was deemed private in 12/06 due to some ridiculous lawsuit against the township police and we closed on the property 7/07.

We're concerned mainly b/c we are fixing the house up and going to sell it. Now that we are aware of the issues WE have to disclose the information to any potential buyer.

We typically buy houses "as is" so we never expect a seller's disclosure. This house was not "as is" yet we never saw a seller's disclosure and neither did our realtor." So I'm just wondering if it would be worth calling our lawyer tomorrow and having him contact the seller's realtor or if it would be a waste of time and money based on the circumstances? To "fix" the rest of the basement is going to cost a few more thousand dollars and we most likely never would have bought the property had we known about the issues with the run-off and the street being private.

Thanks