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Burying a grade-level wall

Our house has a stepped block foundation with a 3 ft crawl space. By "stepped" I mean the ground level in the front yard is 2-3 feet higher than ground level at one corner of the side/back yard... the block steps down about 2-3 feet from the front along the side and the opposite back corner making this side/back corner the lowest ares of the yard.
Since this corner is the lowest part of the yard it's a problem spot for water collection, especially in Februaruy when the ground is frozen solid and we get 8 inches of snow followed by 3 inches of rain. It also happens to be the north-facing wall, which makes it shady and prone to mold. Currently, the siding is rotten along the bottom in several spots and needs replacing.

I've done a considerable amount of drainage work, but every mid-winter rain and spring melt-down we get water in the basement. So, I would like to raise the ground level around this side and back corner to shed water away from the house and into the existing perimeter drainage system.

I think the right thing to do is to cut away part of the wood framing, extend the block wall up, seal the new block wall, and then raise the ground level around this corner. I'm not afraid of hard work, but that's a ton of work!

I'm looking for any suggestions on how I could leave the existing framing in place and somehow seal the walls and bury them without creating a future problem? Rigid foam board, cement board, or PT plywood covered with ice & water shield then covered with something like conpro-seal? Yeah, I'm probably stretching it here, but I know how much work (or money) will be involved in cutting out the framing and adding the block.

Thanks for any suggestions

Re: Burying a grade-level wall

I'd be more inclined to see how the yard could be regraded.
Of course I can't see what you have but a backhoe or bobcat with an experience operator can move a lot of dirt in a short time.
It sounds like a major regrading may be needed to get the water away from your house.

Clarifying any confusion and regrading...

Thanks for your interest and replies. I'll try to clarify and hope you'll reply with more feedback....

DwarfWytch - The entire house is a crawl space beneath. The space under the kitchen and living room is only about 1-2 feet high with a crushed stone floor (truly rough crawling). The space under rest of the house (24x24) is 3 ft high with a poored slab floor that houses our furnace, oil tank, hw heater, well tank and water softner. It also has a good amount of storage space that we use (everything is off the floor on left-over pieces of formular). The entry door is not a bulkhead, but rather a grade-level door - which is where water seeps in.

ed21 - I cannot regrade as you've suggested, since the leach field is on that side of the yard. The leach field contributes to the low area around that corner of the house. I am planning to leave a slight valley between the field and the new height of the ground around the house, so I don't interfere with the field's ability to shed water. The plan includes a surface drain at the low point that will capture that water.

There is already a drainage pipe burried around the perimeter of the leach field, which is what I plan to connect additional drainage pipes to if/when I build up the ground around the house.

Thanks again!

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