AZ Department of Housing encourages short sales by offering money.

In a model, not unlike the HAFA program, AZ Department of Housing is trying to offer incentives for upsidedown homeowners to choose a short sale over a foreclosure. Interesting program, but much like other programs, its success is linked directly to its ability to enforce. If we have issues with HAFA (enforced by the US Treasury), will a local program work? Personally, I am all for it - this sounds like a legitimate solution and a good use of money already allocated to the cause.

Full article from AZ Central here.
Arizona Department of Housing portal here.