@UR – thanks for the referrals, if I go that route I will definitely contact them. I will PM you first to see if you want me to credit your real name with the referral.
@patb – I am not sure the damages are completely mitigated. I fear I will need to do more work on the french drains which is a huge pain. Yes, I would have bid lower, or more likely, backed out altogether had I known about the previous flooding. Drainage problems are not easily corrected, it may flood again if we reach a greater rainfall rate. I will never really know and it will always be on the back of my mind.
In general, I really like the house. I am glad the neighbors are not making meth. However, I feel like laws meant to protect me were broken in the selling process. You are right, it is probably easier to just forget about the disclosure issue and move on. Does that mean it is the right thing to do? I don’t think it benefits anyone except for crooks to knowingly let crimes go unpunished.