House Passes Mortgage Relief Act
The House of Representatives has passed the Mortgage Forgiveness Debt Relief Act of 2007. This bill would "... remove taxes from mortgage cancellation relief provided on a mortgage on a primary residence. The tax relief would apply to the original purchase price, plus personal improvements of a primary residence and would not cover any amount over the original purchase price if a loan has been refinanced with a “cash out” option. The relief would also only apply to first mortgages, not second mortgages or home equity lines of credit. The relief would apply to any forgiveness given on or after January 1, 2007."
To read more: 2007 Mortgage Relief Act