Mud pushing against a weak point causes the wall to come inwards at the middle, this is called buckling. The amount of buckling is referred to as “deflection”.
A horizontal crack denotes structural failure
Deflection does not mean foundation wall replacement, in most cases the deflection of the wall can be reversed, with proper reinforcing, the structurally failed wall can be pushed back very close to original.
The structurally failed foundation wall can in most cases be repaired.
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