House passes debt forgiveness tax bill

"The House of Representatives on Thursday overwhelmingly approved legislation providing tax relief to homeowners facing a foreclosure.

Under the bill, which was approved by a vote of 386-27, any debt forgiven to homeowners unable to repay their mortgage would no longer be treated as taxable income."

If this passes then people will not be held for taxes on a foreclosure. The way it is now, a person may be held responsible for taxes on the forgiveness of a loan which would be the difference of what they owed and what the bank could sell it for. This will help people.

Read the article for the full details.