Newsflash: Sewer line issue (FHA mortgage)

I am in the process of buying a home, I did FHA and made it through the inspection, everything was well except for the sewer line, the home seller (elderly 65 plus) stated yearly the washer backflow would go off and get water in the basement as a disclosure, during inspection we come to find it’s sewage water not washing machine waterDuring contigency of repair I requested a cam snake feed of the sewer line to find the problem, the camera found a sag in the sewer line 30 feet off of the house and the sag is 18 feet long and ends on city limits, ( the city doesn’t pay if the pipe touches any of my property so getting city to pay is a no go)On Monday I will request the the seller fix the sag and replace the pipe, most likely she will say to screw off and is not going to fix it, i have a plumber friend that estimates it will cost between 5-10k to fix this, do I have options if she doesn’t fix it and I want the home, or do people with sags in their sewer is it not too bad? This is the best home in my price range I’ve seen so far and want to move in, could use advice I will be buying my homeowners with an additional coverage of sewer lines at an additional 100 or so a year, will this pre existing issue be covered if they owner doesn’t fix? I also don’t want a credit to repair in=case the job ends up costing more than the credit i receive



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