@Troy Owen
absolutely agree with all of your points, thats why i had 3 contractors come out whom i personally met with, followed by a licensed structural engineer.
essentially it sounds like the problem was a combination of drainage issues (yes downspouts, gutters, clogged drains etc) as well as an extra rainy/wet winter.
@Bill S.
i purchased the property in 2012 and none of the issues existed, neither to my blind inexperienced eye nor according to my inspector. there were certainly no holes in the wall due to water damage as there are now. Which leads me to believe that the problem is still manageable and can be resolved with addressing what i listed above as well as possibly repairing the drain (for which i have to get a plumber in there to examine)
According to the PE engineer i hired the walls do not need to be replaced as the other contractors stated to me. He said the water thats in the walls just needs to be drained.
I just wish i could trust contractors that came in there. So far the only person who's opinion I trust is the engineer.