Question re. insulating existing exterior walls

My wife and I purchased a house in Northern Utah that came with a finished basement. The exterior walls of the basement (the walls against the sides of the concrete foundation) are not insulated, and the basement gets really cold in the winter. This is something I'd like to correct but I really don't want to pull all the drywall off, insulate, and then re-do the drywall, repaint, etc. Here's the catch: the exterior basement walls were framed with 2x2s.
I called a local insulating company (the only one that insulates existing walls), and their sales rep told me that none of the usual methods for insulating existing walls (blown, foam injection, etc.) will work with a 2x2 framed wall. When I asked for a suggestion, he told me to take the walls down and insulate them the usual way.
I have a hard time believing that this is the only solution. Does anyone have any suggestions? Has anyone had a similar experience? Any guidance would be appreciated.
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How much of the basement is below ground level?

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About 5 feet.
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It would be a lot of digging, but you can dig it out nad then put foam slabs against the walls, backfill and yo are done. Well, not completely done because you have to re-plant stuff.
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In most areas, when you get below 2 ft., your heat loss starts dropping. Anything below 5 ft. has very little heat loss. Spray foam is great, but it might push against the drywall too much. Go with blown-in insulation. Some types (like cellulose) settle more than others. Go with blown-in fiberglass. It's light and won't settle much. Holes are drilled and then plastic plugs are used. If you have a drop ceiling, maybe you can drill the holes above it to hide them. Remember, insulation is going to help you retain heat, but you'll still have to add a little heat to the basement. Check this out, http://www.bobvila.com/ArticleLibrary/Task/Repairing/BlownInOptions.html

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I had a company called Thermal Advantage in Phoenix squirt insulation into my block home sometime ago. I wanted the garage common wall insulated (2x4's and drywall) and we did have an argument about it. They finally agreed. They punched holes top and bottom in each cell. Then pumped in the insulation. I can not hear the garage door open nor the dryer alarm any more. It certainly was not inexpensive. It did work.
1.75 inches of foam is not going to get you much of a R value unless your using the small cell polyurethane products. Check John Mansfield solid sheets at the home center. Foil backed and I believe you would get R-11 from 2 inches.
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It's a 2" space. Pumping foam into there isn't going to provide much insulation. Along with being problematic trying to get into the small cavity with decent distribution throughout the wall. Thus most companies won't fill them since the job won't go well and, in the end, the walls will be a wreck of holes added to find all the voids.
You bought a house with a basement that someone else did a half-ass job insulating. If you want it properly insulated then it's really best to pull down the crappy work and have it done right.
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Depending on the type of spray foam, it can be anywhere from R-4 to R-8. Thats almost twice the R-value of any other type of insulation. In addition, it expands to form a continuous insulating barrier to fill tiny cracks you dont even see.

will
pull
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Roger the half-ass job. The lack of insulation was only the tip of the iceberg!
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Anybody have any experience with this stuff? http://www.fomofoam.com/existing_homes.htm
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snipped-for-privacy@yahoo.com wrote:

No experience with it. They do state that it won't push your wallboard off the studs, something that the isocyanate foam manufacturer warned me about. I'm doubtful that the foam will find its way around existing 2" insulation in 3 1/3" walls. This was common in 1970 when my house was built. And after foaming, forget about installing new electrical outlets, ceiling lights, network cables, or TV cable outlets.
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I called the company yesterday, and they said that it would work, although I might need a tube to direct the foam downward. A BBB check turned up nothing amiss....
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Don't go by what the BBB says. They are a profit making organization funded by businesses. They'll help mediate if you have a problem with a member company.

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Yes, I insulated my NW corner bedroom with it. It was satisfied. I had drywall hanging on cinderblocks via 1" furring strips. So I added about R-7.
It is a big job to do. Here is a photo:
http://jcman.hostingisfree.com/before_insulation1.jpg
Hard to say if it has made a dramatic difference since our winter's been mild.

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Thank you! Think I'll give it a try.
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Your best course, as mentioned by Ed, is to insulate the outside, with appropriate thickness of rigid foam board. The masonry inside makes the temp very stable, though it may take a few BTU input to get near body temp.
Failing that, I'd bite the bullet (as I did in part of my basement) and rip all the crap down inside the exterior walls, reframe to 16" o.c., insulate w/fiberglass, and drywall. Gave me the opportunity to redo outlets too. Insulation you might use within 2x2 framing will be much more expensive than fiberglass batts. You'll just have to extend window jambs.
HTH, J
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