Is it just one or two blocks that are deteriorating?? or does it seem like the most of the wall has this issue?
I understand what your trying to do, but something like this will only worsen over time, especially if the moisture is getting through already. Even if you try to patch it up and sell the house, there could be some legal issues once the problem is uncovered.
If you're planning on staying there for a while, its a good idea to spend the extra couple K and have it fixed for good.
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