Real good answer. Sheet vinyl or any other relatively thin and resilient flooring needs a smooth and flat substrate. If the existing tile job is flat with very little lippage, then preparing the surface to receive the new flooring would be easy and cost effective. As others have said, you must get a smooth and flat substrate or "slight variations in the surface will show through"...i.e. 'telegraph' to the surface of the vinyl.

Thanks for your answers! glennsfc, Sorry I don't know the technical word for that. But with the word "peeling" ceramic, I meant the top coat of the ceramic tile is peeling off in a few spots on the tiles. There're not a lot of those but I just know they're there... I read on this blog that a lady installed vinyl tile on top of the existing ceramic tiles. I wonder if anyone has that experience? The ceramic tiles I have right now is not in extremely bad condition, just a few "peeling" spots, very light color and stained yucky stained grout. http://www.sasinteriors.net/2012/10/installing-groutable-vinyl-tile-lowes/ So I wonder if there's anyway to work this out... with a baby in the house, I don't really want to make a big mess. Plus I don't have a lot of time to do that... :( .

When you buy a foreclosure, you are taking on someone else's problems. Sorry to hear about your situation. This is a major issue that requires a thorough solution. There is no easy fix. Be careful of hiring anyone who claims to have a simple solution. Be wary of any professional who claims anything different from what I'm about to tell you. I did one of these last year. The circumstances were identical to yours: foreclosure, patio above the garage, leaks inside, mold, low budget, and many professionals with different opinions. The patio was a thin slab poured over plywood, conventional framing, no waterproofing. It sloped toward the front wall (away from the house) but the water was entering where the slab met the wall, and pouring onto the sheetrock ceiling in the garage. For us to fix this problem cost about $5K. It was major work but we kept the cost as low as possible. The homeowner found a skilled handyman to do much of the demolition. Here is what it took: 1. Remove all sheetrock from the ceiling below. This will allow the professionals to see the problem. Right now you are getting different answers because they are guessing about things they can't see. 2. All structural members need to dry out. Any ones with rot must be replaced. We timber-shored the upper level of the house and rebuilt 2 of the garage walls, plus some of the joists supporting the patio. The stucco had to be taken off for this. Replace the stucco promptly, as soon as the framing is complete. 3. Fix the slope of the patio. I packed a mortar bed over the slab. The tiles have to be removed, of course. 4. Waterproof the patio befor laying tile. Make sure the side where the water runs off is flashed and waterproofed to the gutter, or rain channel. If the water just runs off and down the side wall, fix this. At a minimum there should be a drip edge. Water running off a horizontal surface and down an exterior wall is likely to enter the wall cavity. For waterproofing under tile, I use Schluter Kerdi and Ditra. I like the Schluter products because they are specifically designed for tile. Torch down roofing is also a good choice, for under a deck. Cope the membrane at least 6" up the side walls (where the patio meets wall) 5. leave the ceiling open and check the membrane is doing its job, before laying tile. I know you asked if there is anything you can do, other than tearing everything out. Sorry to say, the answer is "no" Anything else will be a waste of time and money. Because your problem is identical to one we fixed last year, I thought detailed instructions may be helpful. We had some serious rain and flooding in December and I am happy to say the problem is 100% resolved. I talk to the homeowner and her handyman frequently, plus I have been back to the house for other jobs. No more leaks.

Over floor, yes (sometimes), but not over the walls. This requires removal of the existing walls, then new wall material, cement backer board, etc. then tile - a full job. And be sure to pick a pro. I got a call to look at a 4 yr old (new) shower that was part of a new addition. They said a couple tiles (wall mosaic) were a bit loose, and it was leaking into the basement. When I removed the tile, silicone patch and scratched out the grout, I could see the corner wall studs an inch wide! Not a good install, but shows what some guys will do to save time and materials.