If you are a novice you cannot do it. You can make the problem worse.

Hire a proefessional.

Agree. If you need to ask here about this one, you could kill your self replacing foundation.

If money was not an issue here, I would just hire it out, but I have consulted professionals, and I guess since I look young, they must think I was born last night.
I realise that its not cheap to repair the foundation of the house, but to some estimates that I got just to "patch" the bad areas were ranging from 10K to 22K! I had called a man about raising the house, and digging a basement under the house and setting it back down on it. I told him I was just tossing the idea around, and wondered what it might cost. He asked the sq ft of the footprint of the house, and all that. Then told me what similar sized houses that he had done this with ran. Funny thing was, he was only 5 or 6K higher then these other fools.
I realise that its not something to be takin lightly, but you have to start somewhere. I need to atleast slow down the rate of failure. Money is a tight issue right now. So instead of watching it get worse, I want to do something about it.

Unfortuantely, rather than saving up or borrowing the money to have the job done professionally and done right, your and your money are going to be soon parted having the job done wrong...and with great risk to the structural stability of your home and the great risk of losing your life in the process.

Whoever said a fool and his money are soon parted could well have been thinking about you when he said it.....

Good thing there are code enforcement officers to stop fools like you from getting permits and killing themselves.

Homebuild,
I first thought you were being a little harsh calling him a fool but then realized that he first used the term in reference to legitimate contractors.

Maybe he can do the engineering, get the permits, dig it all out by hand, provide five thousand dollars worth of jacks and cribbing, erect safety fencing, haul the tons of debris to a legal landfill, pay the fees and insurance, rent concrete forms, build the forms up plumb, tie the rebar right, and pour the concrete, backfill and replant the yard, avoid angering the neighbors, and do it all for less than &22,000 and still not call himself a fool. For cryin out loud, give him the benefit of the doubt...

Have you thought about digging 2 foot by 2 foot square piers (3 feet deep) along the inside of your foundation walls?

If you then fill them with cement, you create piers upon which you can build new foundation walls. Tie 3 3" by 6" boards together and use 2 sets per pier. Then lay a laminate I-beam across the new 3 by 6 posts.

Set this wall just inside your original foundation wall and then lay the house on the new wall (you can break out old wall once new one is in. Just make sure the overhang is not great).

I'm contemplating doing this, but have friends in construction who will assist me. Suggest you get serious help before you try, but this idea may be cheaper than all others and could possibly be done one wall at a time.

this is why i hate smart asses and contractors. Instead of simply answering the guys questions and trying to help him figure out how to do the process most of the replies are centered around telling him he can't do it, shouldn't do it, and so on. How about you teach the guy what you know and help him find answers to the problems without having to spend tens of thousands of dollars?

Where there is a will there is a way!!!!! "Do not tell me it cannot be done"

..."How about you teach the guy what you know and help him find answers to the problems...." See here we have one side of the problem, where weekend warriors and DYI "experts" dont like the price they were given and are trying to cut corners. Contractors like myself who do this everyday for years are supposed to impart that knowledge and experience to someone who really has no idea what they are doing? You are kidding yourself... Piffin and Homebild gave exactly the right advice; they are hardly to blame because you dont like the answer.