Are you able to include some pictures by chance?
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Ignoring the rocks, red clay requires some prep to start a lawn. You will need to rent a tiller before putting anything else down. What kind of grass are you planting? (Fescue, bermuda, zoysia, etc)
Might be able to rent a tractor or something to flatten it, sounds like most of the rocks are just dirt clumps. Either way that should help.
Or if you have kids yourself or in the neighborhood, you could hire some help and keep them busy during the summer break?