After a heavy rain, water got into my finished basement. I didn't discover the water until it had been sitting for about a week. On one wall, an area of about 5 feet wide and 6 inches high the sheet-rock has just dissolved and needs to be replaced. Can this damaged area just be cut out and replaced with new? I'm assuming that I need to remove the old sheet-rock starting at the center of the wall studs, so I'll have something to nail to. What should I do about the top of this replacement piece as I won't have a nailing surface?
Thanks