Thanks Dave.
I did run out and go to Home Depot. Went to the plumbing section and got some Waterproof repair tape. Tried taping it from the outside, but the waterflow was too strong, so hubby got in and did it from the inside. The tear was only about 2 inches long, but the water was really gushing. Looks like we got the tear patched up.
In the process of all this, we did find out a little more about the pool structure. the walls are buried about 6". (another reason it was hard to get to it from the outside) Hubby said when he got in, he could feel where the foundation was gone under that spot. So tomorrow morning, I will go out and see how it looks. Will have to get some dirt or something to shore up the bottom under that spot. I put as much mud as i could find back in the hole, but it is definitely not enough.
Now I have another problem, but I will start a new post in the Start up/Closing forum for that.