AZ Depart. of Housing is trying to spend $269 million in federal foreclosure-prevention funds by offering homeowners $4,500 & to pay their 3% closing costs to work with their lender & complete a short sale instead of losing their home to foreclosure. Housing Director Michael Trailor said the state agency will start taking applications for the short-sale program today. Go to housingaz.com to apply. It's the same site that is taking applications for the principal-reduction loan-modification program and unemployment mortgage aid, both of which also are being funded by federal money from the Hardest Hit Housing program.