What to do during rebuild due to termites
I've never dealt with an active termite infestation as usually the home has been tented and bugs eradicated prior to my being called in. Search "termite shield" in this forum and google the same term. Apparently there is a method of preventing termites from getting to your foundation by applying a ditch of some specific granulated material, probably somewhat costly. Termites are getting through vertical voids between blocks? Your issue seems fairly complex, perhaps involving sealing your foundation wall, grading issues, flashing, etc... In your shoes, I'd eradicate the active pest problem and address the foundation issue first. damaged framing, if not thoroughly destroyed, may be possible to salvage vs. completely remove. If you post some pics there are some skilled pros that frequent this forum (I'm fairly new here, but I'm a framer/remodeler and DIY guy myself).