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The U.S House of Representative has agreed not to consider mortgage forgiveness as income in connection with a short sale.  This is an extension of the Mortgage Debt Forgiveness Act of 2014 and provides a measure of protection to those owners able to complete a short sale.  See more on the subject at: http://www.housingwire.com/articles/32265-short-sale-tax-break-passes-in-house

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