This is great news for those Home Owners who unfortunately have to do a Short Sale or Foreclosure! Why you ask? Well, to put it simply, if a homeowner sells their home via Short Sale/Foreclosure for $50,000 but they still owe $100,000 on their Mortgage Note. The Bank has "forgiven" the homeowner the remaining $50,000. The homeowner should have to pay TAX on that waived $50,000 but because of the Mortgage Forgiveness Debt Relief Act of 2007, the homeowner is not (0 comments)