I purchased a house that was noted to have had foundation repairs made to it and the company has a lifetime warranty. However, to this date, over one year later the foundation company has not been able to get the house to a point of no or little movement. My question is two fold. One, can the previous owners be held liable for repairs that have to be made since I believe they did not fully disclose the foundation problem? And second is there a way to get out of the existing mortgage so that I can demolish the house and build a new one? I live in Texas if that helps.

You may be able to get the previous owners to foot the bill, but your are stuck with the mortgage.