Thanks for the chance to help. I am an attorney with over 12 years experience. Hopefully I can help you with your legal question.
I am very sorry to have to bear bad news. What you describe, I agree is a clear problem with the design of the development. When they planned this community, it seems they did not understand how the water would flow...or if they did, they ignored the impact, at least as your piece of property is concerned.
The problem you face is threefold.
The first is standing.
Had you purchased this property new, from the developer, you would be able to sue the developer for this poor design. But since you purchased the property from the bank, you have no legal "standing" to sue. The law will not allow you to sue the developer since you were never in contract
with the developer.
The second has to do with sovereign immunity. Under the law, it is possible in some cases, to hold a government agency liable for negligence. But the law that allows this is complex and strictly limits an individuals ability to sue. To sue the planning board, you would have to follow the rules to sue the state. And these rules exempt the state from liability in the case of "discretionary function". Basically, if the action you wish to sue over was a "discretionary function"...the individual or agency had discretion to make the decision, then you can not sue. This makes it tough, since unless you can prove that the planning board knew that this was going to be a problem, but allowed the design regardless? Then you can not sue them and hold them liable.
The third issue is the statute of limitations
. To sue the municipality you have only 2 years from the date of action (the date they approved the zoning). If this is an established community, I suspect that more than 2 years have passed.
So I am very sorry to be the one to tell you that the circumstances you describe? The law is not on your side. You are not going to be able to sue the developer since you were not in contract with the developer, and it is unlikely you can sue the municipality based on the rules that limit claims against the state and because of the statute of limitations.
Let me know if you have more questions...happy to help provide more information if I can.