Professor Kurt Eggert was quoted in the Wall Street Journal in a story entitled “More Loan Forgiveness Sought” about the tax implications of the “loan forgiveness” that comes with foreclosures, short sales and loan modifications for troubled loans.  In the piece, Professor Eggert stated: “A double whammy for many in the current housing market is a home that has lost value together with a loan that has become too expensive …. I think for people who are trying to save their homes, to have an additional tax burden is very problematic .” He further noted, “It’s ironic if on one hand the Fed is saying ‘modify these loans by reducing principal,’ and then we’re going to hit the borrower with a large tax bill right when they’re most vulnerable .” Read article…