Termite Damage found during inspection

[Aaron Taylor]

Looking for some opinions on some damage found by the inspector today on a house we have under contract.  Evidently there is some old damage where it was treated a long time ago in 1995 (the pictures in white) according to the owner and then an active spot by the garage door interior.  No other spots were found.  It was an older lady who owned the house so I don't think she ever went through the trouble of fixing anything cosmetic.  Obviously the drywall stuff looks bad, but not being experienced with termites I wasn't sure how much something like this would cost to fix?  Looks like removing the drywall and then probably replacing/adding support inside?

The garage looks like you could just treat and be done with it almost.

Obviously the first thought for some would be to 'run' but if the repair opinions aren't high I don't think it would be a deal breaker, unless people think otherwise?  There's room in the budget to fix this unless it's going to be a $5k+ thing.

Thanks