Foundation problems can be tricky to diagnose, and some people get very afraid when they hear that the foundation needs evaluation and repair.
Sometimes it is an easy repair, and other times it can be difficult. In this case, the walls on two sides of this house were bulged inwards, and this was likely caused by hydrostatic pressure building up from the outside of the house.
Improper grading and lack of gutter maintenance is probably what caused this foundation to bulge inwards as the runoff soaks the soil around the house to the point of pushing ion the foundation walls causing horizontal cracks. Horizontal cracking is usually more serious an issue that vertical cracks, but it is always dependent on where the crack begins and ends.
As you can see from the picture, the bulge is quite pronounced, and this was noted in the inspection report as neeeding profesional evaluation by a foundation repair contractor.
The house was beautiful inside and out, but this issue can be expensive to repair, so it should be left to the professional.