Short Sale Debt Forgiveness - Waiving the tax liability?

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Pres. Bush mentioned during one of his speeches that the Government was going to temporarily waive the tax liability on debt forgiveness income if homeowners do a short sale on their home. Has this gone any further? I haven't heard anything and I'm not sure when it is to go into effect.

Also, I've heard the credit score requirement was going to be lowered next week so it will make it alittle easier to obtain mortage loans. Is this true?

Short Sale Debt Forgiveness - Waiving the tax liability?

There has been no legislation passed yet. But the existing tax law already provides for some situations where the debt forgiveness from a short sale will not be considered taxable income. See if any apply to you - I've included a link below.

I have not heard anything about lowering the standards for mortgage loans and I don't believe any law can force that to happen.

Short Sale Debt Forgiveness - Waiving the tax liability?

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