Many people that live across this vast nation have been in the unfortunate situation of losing their home or having to do a short sale or deed in lieu of foreclosre. It is already hard enough to deal with the fact that their most cherished posession is no longer going to be their, then to learn there could be tax implications is a double blow. If they are able to get a short sale or deed in lieu of foreclosure, then they also are taxed on their income by the amount that is forgiven by the bank. 

Fortunately this mortgage tax relief law that President Bush just signed is a help to that.  It actually allows the forgiveness to be just that, forgiveness and not yet another obstacle for people to worry about when tax time rolls around. I see this as an opportunity for people to get back on their feet sooner, rather than having to spread the tax out for 5 years or having to claim hundreds of thousands in income that they did not earn. It really makes it difficult to go through and many people have felt like there is no way out of this.

What is your perspective on this?  Do you think this is going to hurt or help the real estate industry? Do you think this is a good or bad thing given the type of markets that many people are in?