Help, 1st purchase, termite infestation missed by inspection

[Milind Shastri]

Hello All, 

My wife and I closed our first home (house hack project) a few days ago. We went in so excited and while cleaning the place found termite damage in the front and back. I'm attaching pictures. We found large live termites too (see pictures). 

We had got a termite inspection done and the inspector gave us a report stating no prior or current termite infestation. I am surprised as to how a professional termite inspector can miss at least a 1000 termites in the window frame of not just one but 3 bedrooms!! (see pictures).

Now, we purchased the house as an estate sale with an out-of-state owner (hence without a seller's disclosure and in an as-is condition) so the seller is not liable, but an accurate termite inspection report could have helped us negotiate the price with the seller. 

Has anyone faced such a problem? We were planning to move in tomorrow but now have to change all plans. What remedial action can we take towards the loss caused by an incorrect termite report? Is anyone liable here? Any advice/ suggestions are welcome.

Thanks,

Milind