This is a perfect example of media hype. Though the headline in this article reads “Principle Reduction Still a Possibilty ….” the article itself seems to conter this. Apparently the deal bewteen the lenders and the Attorney Generals of various states is beginning to be finalized. It should be noted however that any prinicipal reductiion for affected homeowners has been dropped from the term sheet.

Although it is stated that some families “could still receive this type of assisitance”, I wouldn’t hold your breath if I was a homeowner!

http://bit.ly/jh6o12