I am in Lancaster, PA so our geographical region is similar. 
That grass needs to go.  I would mow it as low as you can almost to the soil.  Rake all of that up. 
I would buy quality seed (overtime tall fescue is a good one).  Rent an aerator and a slit seeder (toro - not a ryan).  
 -Aerate first
 -Slit seed with the Toro
 -Spread starter Fertilizer
 -Water religiously 
Thats what i did to my 1 acre I built on in 2016.  Contractor used some really awful grass seed and i had nothing but weeds.  slit seeded (walk behind) 3 times and then last fall 2017 i just aerated and overseeded.  Ill do the same this fall and now i am green and healthy!