I searched but haven't found any households so far, so i am trying to find a household of sims created for use in the asylum challenge, patients and doctors, with cc used is preferable, but i'm not picky :p. My sim creating skills are pretty bad and i only plan on making one sim that i will control. I'm also looking for mods that help with the challenge.

Use to be most people used simselves or character sims for this challenge. As for mods you are meant to use no mods and I can't think of any you would want to use. The whole point is not to use things to help but to go as vanilla as possible. What does help is the right house lay out. Two fridges, kitchen separate, large bathroom, wide hallways. Certainly ACR and unplanned for babies would spice up the challenge but I can't think of any other mod.
Boolprop forums used to have a large list of simselves and MTS has plenty of character sims, a couple just got uploaded recently the Tragic Clown and Alice Cooper, a couple of good candidates if ever I saw them.

I'm sort of just doing an inspired by the asylum challenge. I'm not really following all of the rules. Thank you for the mod suggestion.

Download characters from books/movies/games/series that you like and use them I agree tragic clown would be good! Maybe you can use an extracted/cloned mrs crumplebottom, therapist, unsavoury charlatan, social bunny, rod humble, etc? If you use boolprop testingcheatsenabled true and then press Shift-N in create-a-family, you can access the hidden outfits so you could make sims like a mad scientist, cult leader, etc.