Hazel Young Finney, 81, a longtime area resident who was active in the Loudoun County Extension Homemakers Club and in organizations for retired persons, died Saturday in an automobile accident in Annandale.

Fairfax County police said that the vehicle driven by Mrs. Finney and a second car collided at the intersection of Annandale Road and Medford Drive. Investigators said Mrs. Finney's car ran out of control, jumped a curb and went over an embankment. The investigation is continuing, police said.

Mrs. Finney was born in Adams County, Ill., and came to Washington in 1934. Before World II, she owned and operated a rooming house in the Meridian Hill Park area of Washington. During the war, she was a clerk with the Federal Housing Administration. Beginning in the mid-1950s, she worked at the downtown store of Woodward & Lothrop and remained there until 1963, when she retired to Lovettsville in Loudoun County.

During the next 10 years, she was active in the Loudoun County Extension Homemakers Club. She also served as president, secretary, and district chairman of the organization.

Mrs. Finney moved to Leesburg in 1973 and lived there until her death. During those years, she had been a program chairman for the local chapter of the National Association of Retired Federal Employees and was a regional convention delegate. She also was a member of the Leesburg Silver Threads and the American Association of Retired Persons.

She was the widow of Harry A. Finney, a retired Washington Attorney and former government housing official, who died in 1973. They had been married for 53 years.

Survivors include two sons, Don Finney of Stanton, Del., and Robert R. Finney of Springfield, and six grandchildren.

The family suggests that expressions of sympathy be in the form of contributions to the Peace Plantation Animal Shelter in Leesburg.