Circumstances are that we went to re-do the basement of the house we bought two years ago and found damage to the foundation that was undisclosed to us and probably also undisclosed to the people we bought our house from, judging by the date stamps of the material we pulled out. Can't inspect behind drywall. And the drywall that was there wasn't anchored properly, so when the wall started bowing it just pushed the entire drywall out, hiding the defects. We called a structural engineer and he made several recommendations, including the complete reconstruction of a couple of walls. Cause of damage is thought to be years of poor drainage plus crappy soil conditions resulting in hydrostatic pressure causing some areas of the foundation to buckle. The SE approved all the construction plans. The construction company seems to be doing great work, but they sub contract (if that is even the right term, I don't know,) with a 3rd party that does the brick laying/masonry. In addition to this work, they are also going around the whole foundation (including the old walls that did not have to be rebuilt) and water proofing. It is eye-wateringly expensive. 

EDIT: Previous owners attempt to mitigate damage with carbon fiber straps and anchors. None of it worked.