Congress Moves to Eliminate 'Phantom Tax'

I blogged last week about the possible tax consequences of forclosure.  It now looks like a bill moving through Congress will go a long way to ease the tax burden of borrowers who lose their home to foreclosure. Read all about it here.

For fun, or if you are having trouble falling asleep, you can go read the text of the bill here. 

In short, this bill provides that any amount forgiven on mortgage debt on a principal residence will not be taxed.