I am interested in purchasing a home in Southern California in Corona, that had issues with soil foundation where the builder Centex bought back the home from the owners, and watched it for 3 years. Apparently, we were told that no further settling was noted in the 3 year period.

The visible damage we can see is that the back of the house sank down, to the point that there are cracks on the back wall and the back door to the backyard got twisted and the door does not open or close properly. What used to be a swimming pool is now filled with dirt.

My questions are:
1. If we bought the home and fixed it, would we have to disclose the soil issue when we sell the home?

2. Approximatley how much will it be shore the back of the house up.

Please advise. Thanks.

There is no limit on settlement. Three years don't mean anything. In most of the states I have dealt with disclosure of major defects is required and even if disclosure is not required, lawsuits are still a possibility especially for something major.
This could be caused by water underground, fill placed uncompacted, trash etc. Only drilling and exploration would narrow down the cause.

you can expect more, and could be held liable. I would be afraid of it personally, unless you are getting it for pennies on the dollar of value

And I would be really concerned if it is located any where near a hill!

Don't walk away from this house... RUN!

The answers to your questions are:

1. Yes, you would have to disclose the soil/settlement issue.
2. Far more than the house would be worth, particularly in the current real estate market.