The Act is specific about the type of mortgages covered, time frames of purchase, and qualifications.
Some individuals may be subject to capital gains when they sell their homes via a short sale, they'll need to check with their CPAs.
Many people re-fi'ed and used the cash for other things. Only purchase money loans, or loans to re-model or rehab will qualify. So if an owner bought a bunch of toys, they are going to be exempt from this act.
See link below.