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The walls in my garage look terrible, they are ripped at the bottom all around the entire garage. I have no idea what caused this. What's the best way to fix something like this? I've also got foam insulation oozing out all over the place beneath the tears.

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Is this something that you are sure has recently changed or it has always been like this and you just now want to do something about it? –  Dopeybob435 Feb 3 at 15:55
    
I bought the house a month ago and discovered the garage like this. Not sure if this is how it was since it was built –  Kirk Feb 3 at 16:45
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4 Answers

Steven and I were typing at the same time, I've explained and elaborated a bit more FWIW. Neither of us really needs the points :)

It appears the wallboard was cut a bit too long during installation and it was forced into place, causing some pieces to spall off. In removing the spalled pieces, the paper was further torn. Ideally, you want a small gap here so any water on the concrete does not wick up into the wallboard. As long as this area does not get wet, it's nothing to worry about.

It's difficult to completely remove polyurethane foam from concrete. Scrape off as much as you can, then hit it with a wire brush mounted on a drill or angle grinder. You can level off the spalled areas with joint compound, then paint for a clean neat appearance.

Other than being unsightly, it's not really hurting anything. Remediation would be pretty low on my to do list.

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Well you get my +1 for honorable mention :) –  Steven Feb 3 at 20:23
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The expanding foam that has seeped out can be cut with a utility knife.

The drywall can be fixed with a skim coat (or a couple coats) of drywall compound. If you really want to go all out then you would also sand smooth, prime and paint.

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Provided that they would cover the damage, I would buy 1x4 or 1x6 pine and nail it in place as baseboard to cover the unsightly appearance. You wouldn't have to spend a lot of time doing it, especially if you have a pneumatic nailer: just butt the pieces end to end. If you don't have a nailer, I suggest you pre-drill guide holes through the baseboard to make nailing easier. For the corners you could just butt the boards rather than cutting 45° angles. I'd paint them before installing: much easier that painting after nailing in place.

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I would not take any of the foam out. I am guessing there is a basement on the other side of that wall and this is filling a framing crack. Not only providing insulation but keeping bugs and things out of your house. I would personally not worry about it.

If you need to have a luxury garage I would cut drywall at least an inch off the floor and then use some pressure treated wood as trim - probably can get PT fencing to handle this the cheapest.

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