This is a photo of the area under the white wood molding underneath our living room window. After taking the siding and molding off, rot was visible. Luckily, it was only on the pressboard sheathing, and not on the part actually supporting the window or wall.
In this photo, the pressboard has been removed as well as the molding around the bottom of the house. It was terribly rotten. We also discovered that the plywood used as the floor on the inside of the house is rotten for about 4 inches from the edge of the house. We're going to have to pull up the carpet to replace the wood underneath it.
Since the area under the window jets out from the foundation, there was plastic on the bottom side of the floor board. Unfortunately the Dumas (if you've seen Shawshank redemption you'll get it) who was putting the plastic on decided that the one on the floor should come over the one on the outside of the wall. This made it act more like a rain gutter than a rain barrier and water has been sitting between the plastic an our floor since the first storm after the house was built.
Upon discovering the extra work, the fix job has basically doubled. Not only is the price doubling, now our carpet is getting ripped up. I'm sure it will never be the same. Maybe this will be the incentive that we need to get hardwood after suffering with ripples in our carpet for a year or so.