The last time I had this problem was in a trailer park where the POCO was installing new street lights and feeds, they bored underground and nicked many of the feeders going to trailers, all aluminum it took about two weeks and we started getting calls, we had three trailers that as soon as you tried to load either leg or both the voltage would drop turn on an electric water heater and it would go to 0 volts between legs and or between each leg and the neutral, the best one was one where they had the central air on, it didn't have any time delays so the compressor would try to come on right as soon as the thermostate was calling for it, it would cycle the power would go out then as soon as it dropped back out the power would come on and it would cycle again the lights would just keep comming on the off then on and off till they turned the air off, using my underground locater I found the bad spot and dug it up, both hots had the insulation compromised and the aluminum conductor had turned to white powder, it still conducted enough so that when there was no load you would read 240/120 volts H-H and H's_N, if you only loaded one leg then that leg would go to zero volts, I had to make a underground repair to save cost using a simple double ended lug and heat shrink that has the hot melt glue in it, also I coated the connection in dielectric grease before applying the heat shrink, the neutrals insulation was also compromised and it too also started dissolving into the white powder also known as aluminum oxide but is was still conducting but would have met the same end just would take longer.
If you find that after applying a 240 volt load you loose all voltage line to line as well as line to neutral then you most likely have a damage feeder, ask the home owner if anyone had done any digging in the path from this house to the main house you might get lucky and find the spot where the feeder was hit, my locater has a fault locater that looks looks a bow saw, it will pin point the fault every time so maybe you can find someone who has a underground locater or even find a place to rent one?
Also to confirm that you have a bad underground feeder, turn off both the main breaker at the remote house and the feeder breaker at the main house, using an ohm meter high scale (10k or above) test between the hots and neutral and hot to hot, also you can use an amp meter if you turn the main off in the remote house then turn the feeder breaker on at the main house and using an amp meter to see if the hots are drawing current with the load off at the remote house, if you get any kind of reading then you know for sure the feeder is bad, locating the bad spot can be tricky but asking the owner about any digging may or may not help as it could have been damaged by a rodent, even ask if anyone drove any stakes in the ground, anything that could have compromised the wires insulation, if they are aluminum conductors I would say that the damage would have happened 3 to 4 weeks before they started noticing the problem, copper can be quite a bit longer up to maybe a few months, having an underground locater is priceless in this kind of trouble shooting, I found mine on E-Bay for $1200.00 new it cost over $5k but it has so many functions and mutable frequency's and well as many mode of operations that allows me to not only locate utilities underground but many other things it was a must when I had my trencher and backhoe as the utility locates only cover their conductors and or water lines and sewer, privet lines are the homeowners responsibility and will not be located by them, Ill try to post the info on the one I have but there are many other ones out there that can do the job at a much less cost, they just are not as flexible and has as many features.
Also don't get side tracked by thinking that the feeder breaker should have tripped, many times the resistance between the conductors and Earth will never get low enough to trip the breaker, remember a 8' ground rod that has the NEC minimum 25 ohm resistance contact with earth will only produce 4.8 amps of current, not even enough to trip a 5 amp breaker much less a 70 amp, so don't let this be a distraction and get you off track thinking it has to be something else.
Good luck:thumbsup:
Here is the locator that I mainly use for most of my locates:
3M Dynatel 2273 Cable Pipe Fault Locator
Click on the link above, Google it and you can find them as low a $900.00 but be careful as you might not get all the pieces of the kit when the price is that low, don't get scared of paying these kind of prices as trust me if you advertise doing underground locates and fault location and master doing it you will get the jobs and you can make back the price you pay for it many times over, I would be lost without mine as it has spoiled me, once you have mastered the art of locating things underground or as I sometimes use mine for following conductors in walls or concrete you will try to figure out how you ever got things done without one, so if you can get one for $2k or less grab it, it's priceless for jobs like yours, if you get one post back and I can give you some pointers that will help you get started and some tricks that I use to find exactly where the fault is, as in your case since the conductors are some what still conducting, you can use the 60hz frequency by applying power to them and load them at the remote house to cause the voltage to drop as low as you can get it to then follow the conductor from the source end and it will drop off at the bad point, then use the A frame fault locator to zero in on the exact location, the hand tracer unit can be set to 60hz to follow live lines without using the transmitter it also has frequencys for phone and cable that you can use to locate them without using the transmitter ) I usually get within 6" of the bad spot every time saves allot of digging, it will also tell you how deep the conductors are and is very accurate, I had a coworker fill in a trench on me before we had it inspected so I use it to confirm to the inspector how deep the conductors were, the first time I showed him that it said 28" then I dug down to show hit that it was exactly 28" so after that he would allow me to go ahead and fill my trenches as long as I would let him use the locator to see how deep they were, he actually got the city to purchase one for them to use as it was also great for checking swimming pool EPG's and many other things.
Ya I know I could be a sales man for these LOL but really I have found different equipment over the years that makes our work so much easier like wire tracers and such and this is one of them that after getting use to using it and learning all the little tricks it has saved me so much work and made me allot of money to boot, it can also pay back when you have underground conductor failure that you are still covering under warranty, as you can find the exact point of damage and show them what caused it like I did in the trailer park then the owner can go after the person who damaged it, in these cases I document everything and take allot of photos that show exactly what damaged the conductors, in one case the phone company had an outside contractor do some cable boring in a subdivision that damaged allot of our street light runs, they tried to refuse to pay for the damage but after I e-mailed them the photos they paid for everything.