Did anyone really think banks would want to reduce mortgage principal?? As reported today in the AZ Republic
Starting last February, the so-called Hardest Hit Housing program doled out hundreds of millions of dollars from the Treasury Department to the states facing the biggest foreclosure problems. Then, in December, the Arizona Housing Department received an additional $143 million, bringing the state's total to almost $268 million.

The one loan modification so far saved the homeowner a total of $40,000.
Only one person has received help so far...really I am not surprised. I have a loan with a credit union and they actually hired outside services to help them get tighter on giving out any assistance. You can't ask the banks to lose money they just won't do it and why should they, they are a business. Would you want someone coming to your job and asking for money to help with some problems they may be having...um NO.