Congress has amended The Mortgage Debt Relief Act of 2007 to The Mortgage Forgiveness Debt Relief Act and Debt Cancellation. The amended act contains expanded coverage and an extended deadline to 2012.
http://www.irs.gov/individuals/article/0,,id=179414,00.html
The MFDRA does not cover properties that are considered vacation homes or investments. Homeowners need to be sure and fill out the correct forms as it’s not an automatic situation, be sure to read the IRS details via the link to learn more.
