What are my lawsuit options?

My spouse and I rented a house from a relative. There was a contract wrote up, but after closer inspection we discovered they had only wrote it out for 5 months on a 6 month lease. We were told from the beginning, by verbal agreement and in text messages that the contract didn’t matter because they were going to sell it to us contract for deed at the beginning of the year. They also told us that what we paid in "rent" up to that point would be applied towards the purchase as the down payment. After the first of the year, though, they said the payments they would recieve would affect their income taxes each year and raised the amount of the house "for interest". Then they told us they wouldn’t sell to us because of the headache of the taxes. A couple weeks later, they came back and said they would again sell to us, but now they wanted 00 dollars for a "down payment" before they would start the contract. This was not the original agreement, and by this point we were extremely aggravated we told them we would not pay anymore than what was originally asked and interest and that we couldn’t come up with the 00. So they again went back on the offer. When looking back at the contract for rent that was drawn up, we realized they had wrote down that we would be dwelling in the home for only 5 months (Nov. 21 2010 to Apr 21 2011). Also the final amount to pay them, that they wrote in by hand and we did NOT initial by, was wrote in as 00. Which according to them was our 500 a month rent for 6 months. So not only did they screw us out of a month to live there but they were trying to get twice as much money than what they were owed. This is not all, by far. The next issue is that I contacted them a few different times by text message ( I have saved all texts since we moved in as proof) about damages that occured and items they claimed in texts they would fix/finish and never did. No repairs were ever made in the 5 month period, aside from one of their relatives temporarily fixing the furnace when the blower went out. These weren’t small repairs either. The den ceiling leaked water to the point of part of the ceiling collapsing and water POURED in any time it rained or snowed, the landlord, who had NO plumbing experience replaced the pipes incorrectly and the tub, and sinks all bubbled and smelled of sewage, and the closet was never finished being built and raw materials were left out in several areas of the house and never picked up. One large roll of carpeting was left behind and when I tried to move it after they never picked it up, if fell against the back door and broke the glass out. Which I know is a repair to be taken care of on my behalf. On the 20th of April, I received a text from them stating that we HAD to be out by the next day because they were moving the husband’s father into the home once we were out. I text her letting her know that we had no truck to move us until the 22nd. She said we HAD to get out or they would pay the county sheriff to use forceable entry to remove our belongings and the sheriff would also collect the rent for the last month. BTW our contract did NOT state a specific day of the month to pay rent. I knew what she said was false so I told her to do what she had to do, but we couldn’t move unless we waited the extra day. After we got our stuff out (we had to leave a small coffee table, stackable washer/dryer and ET center due to no room in storage and no place to haul it to) I took pictures of every room, walls and carpets, to cover our end. She sent NUMEROUS harrassing texts the next day calling us "disgusting and pathetic", claiming we had "trashed the house", that the "carpets were filthy" , that the house "smelled horribly of cats and catshit" (we didn’t have an inside cat at ANY point, the smell was sewage from the pipes), and claimed they had to have "a plumber come do repairs because the toilet was clogged with shop towels and feces" (actually brown NAPKINS from fast food places because we packed our t.p. away, and the toilet flushed fine right before we left) Then I find out after these messages that they went on Facebook and posted pics of the house AFTER THEY went inside and "found" these so called problems. I have pictures myself of the house RIGHT BEFORE we left with our last load and the house was almost spotless, so any filth or damages (other than the door window discussed earlier) were not made by us. It’s all lies to get as much money out of us as possible. There are more details, but there is limited space. The other main issue is that from day 1 we NEVER signed a release of information or consent form allowing them to contact past employers or landlords and they did. I have proof in texts to my sister, stating that my recent employer and our last landlord said we owed them money, and she gave amounts and details, so I know it was no blu

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