According the 2007 debt forgiven bill the person does not have to be concered about a 1099C being filed ad being taxed on the diffeerence of what was owed and what the value was a the short sale. This is a temporary adjustmet to the goverment IRS taxing debt forgiveness but may be extended.
If refinacing no debt is foregiven unless you are talking about the allowance in the bill for banks to write down the debt to 90% and refinance with FHA. I have seen none of these transaction completed because the banks have to make a decesion to write down the debt! This bill was all voluntary!... more