So, you'll have to pay taxes on the forgiven debt amount if it's equal to or more than $ 600. (debtconsolidationcare.com)
However, you might have to pay income tax on the forgiven debt amount. (credible.com)
They can choose to refinance their homes but this will result in a tax bill on the forgiven debt and their only option is a short sale or a full foreclosure. (jeffadams.com)