Question
the builder cut into our bank behind the house and now we are at a loss as what to do . I would like to have a back yard that is user friendly. thinking about  taking off the berm to lower hill and putting in french drain , mabe a deck to top of hill? I fel like I'm in a hole.

Answer
Actually, your yard is the kind I like to work on, as dramatic differences can be accomplished with relatively little effort.

Here are some pictures of terraced backyards, using segmented retaining-wall blocks and decking:

http://www.flickr.com/photos/chippenziedeutch/171246056/

http://www.structurelandscaping.com/grafix/120803/2-3-2.jpg

http://www.dansonslandscaping.com/sitebuildercontent/sitebuilderpictures/stepsLG...

Not the best pictures, but you get the idea.  Add some stairs, or a deck, and BANG!! ~ Backyard bliss.  If you have the opportunity, and your community will allow it (zoning, setbacks, association guides, etc), a deck or patio on the top of the hill would be ideal.

Yes, your landscape plan is going to be more elaborate (and expensive) than just a few shrubs and a patch of lawn.  You will probalby need strairs, pavers, french drains, etc.  But when it is all done, it might just be the envy of the neighborhood.  

Your situation is not unique, and there are many competent designers that can help you out of your "hole".  I'd open up the yellow pages (or google webpage) and get some quotes from local designers.

Best of luck ~M

ps.  I particularly like segemented retaining walls, as most homeowners can install them, if they stay under 4 feet per level.

Here are some manufacturer's links with handy guides:
http://www.versa-lok.com/
http://www.keystonewalls.com/
http://www.discoverrosetta.com/
http://www.techo-bloc.com/homeowners/index.php