Expert: David - 9/1/2009

Question
I have not missed a payment on my mortgage yet but am so upside down that it doesn't seem feasible to keep paying. My mortgage is 245,000 and my house is worth today 140,000.  I wanted to foreclose as I am stuck in my home and a law firm was going to help me foreclose as it doesn't seem feasible to keep paying 2,500 a month for a small condo.  I understand it will hurt my credit and that they will help me fight the bank but their fees are a $2,500 retainer every 6 months.  Is that typical? I want to make sure that I am not being taken advantage of?

Answer
I am not sure what the normal cost is for that assistance but check out the home save program at NACA.com first.  I have a couple of clients that have had their mortgage reduced to the current value and their interest rates cut in half with NACA help.