This isn't an easy or safe project for someone who doesn't have the proper equipment or experience.
A house mover can raise the house for the foundation problem,allowing you to excavate the entire foundation ,lower the house and begin piecemeal removal and replacement of the walls and floors, again,this is not for the novice.
Get a professional or 3 to look this over and give you not only their bids,but their thoughts as to how they would approach this.
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