Yea the grade is really not that steep. But that is what I am thinking. Just topsoil with seed. I think that would really get it stable. The only place that is washing out is where just dirt is. The grass section is fine. I have to agree with you here. I see no reason for a retaining wall. That why I mentioned just seeding it. But wanted some opinions on what I need to do to address the red clay. Yea I would have to rent a skid, and as far as a hydro seeder is it really necessary? Cant I just throw the seed down and rake it around slightly and straw the area? And here a few more pictures. Maybe give better idea how steep it is. I was kneeling down taking the pictures.