Wells Fargo is in discussions with the Arizona Department of Housing about joing a program that would provide a principal reduction on delinquent mortgages. The Treasury Department allocated $7.6 billion to the Hardest Hit Fund and Arizona received $268 million of this. Of course, it uses taxpayer money!
I am not in favor of the government using my tax dollars to bail all these homeowners out but, considering the trillions of dollars they are throwing away on other things, I can live with it. At least it is a step in the right direction towards a return to normalcy in the housing market.