I got lucking and was able to salvage the carpet, but not the carpet pad. I learned that you have to dry carpet from back to front so the glues that keep it together don't dissolve. So here's the pictures of the damage. My first indications that it was more than just some wet carpet.
The problem corner where the water is seeping in from the foundation.
When I realized that I had mold.
The rusty nails that told me that this was not an isolated incident. According to the insurance guy, it's not the previous owners fault that they didn't notice because the dry wall was doing a good job soaking up the water.
The pile of of molding drywall I riped out.
I don't know if you can see it but the vapour barrier was dripping with water.