This picture shows a garage block foundation wall failure. The cause of the failure was due to sinking of the foundation wall. The sinking could have been due to an improper / undersized footing (the base of the foundation) or compaction of the soil under the foundation / footing or erosion of the soil from under the foundation. Part of the garage wood frame wall is no longer supported by the foundation wall.
Photo taken by Dennis Robitaille of Able Home Inspection.