> We did ask about the well before closing but the information we were given does no match what we bought.

Do you have that documented? If they knowingly lied to you your lawsuit should be easy.

> When we talked to the developers we were threatened with lawsuits if we spoke publically and one of our neighbors started getting death threats.

Classic intimidation. That's when you know you have a case. But you also need to make sure you're not saying anything you can't prove.

As everyone else said, contact a lawyer and make sure you keep records of all the communication you've had with everyone. If a lawyer seems too difficult to start out with, contact a real estate agent from a different town and ask them to review your paperwork.