Last year we had water coming into our basement (not too bad) so I opened up the wall and found What looked like a settling crack. Repaired that and have not had water since. I noticed at that time a hole at my foundation right where the crack started and water was coming in. Filled it with some spray foam and covered It with a small stone until I could fix it properly. Fast forward to this past weekend, we had like 8 in of rain and while outside I noticed water pouring at a steady rate down the Jchannel (I think that’s the name), enough to where it was filling a bucket fast and also noticed this was happening right where that hole was in the foundation. Besides putting in a French drain (irrigation lines are right there) what can I do so that eroding does not happen again and what is the best way to fix the area where the water had made a whole. Pictures to show the problem area (stone is below where the water is coming from above).

 

Soil typically should slope away from the house so that water will naturally run away from the foundation before soaking down into the ground. It seems like your soil does not... it simply follows the grade down toward the fence, so any water running downhill becomes cumulative.

First thing I would suggest is removing the sod with a sod cutter, then regrade to raise the soil level next to the house. Typically a clay based soil is preferred when regrading around a home, since it will shed water the best.

Ideally, the bottom edge of your fence should be above grade.

The hole could likely be patched with either a repair epoxy or hydraulic cement.

 

There should have been starter strip, not J molding there.
J molding is just acting like a gutter directing all the water to one area.
Spray foam was useless for this one, now it all needs to be removed to fix it correctly.

 

Typ when you install siding on top of a partial brick or stone wall J-channel and flashing is used vs a starter strip but that wont change the overall issue.

The only other comment, get that gutter discharge piped into a drain, it's probably adding as much water to the area as the siding!

 

Like Marq1 said it is the issue of the water running from the siding, it’s not a drainage issue concerning the slop of the yard. I believe the issue is so bad in the one spot because of the long fun of the siding, I don’t have this issue at the next corner of the siding or on the other side of my home. My thought was to create a pipe gutter (with small we pvc or such) so route the water down. I thought about drainage gravel but think that would only help with helping the foundation issue but there would still be a lot of water next to the house.

 

Drill 3/8" holes in the bottom of your j channel every 12" or so.