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Either way you look at it this type of project should be completed by a specialist. What needs to happen is a set of footers has to be dug down , concreted and a block wall installed on top of these new footers, the problem that arises is that in digging these new footers you run a very serious risk of weakening the existing footers. The house would need to be supported while all this work is going on, then gently set down on top of the new wall regardless of block or poured.
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