Thought you’d might find this interesting about the debt cancellation.
http://homebuying.about.com/gi/o.htm?zi=1/XJ&zTi=1&sdn=homebuying&cdn=homegarden&tm=30&f=00&tt=13&bt=1&bts=1&zu=http%3A//www.irs.gov/individuals/article/0%2C%2Cid%3D179414%2C00.html
PS I dislike the tax code and the IRS as much as the last person, but some of their brochures and material are well done and easy to follow. At least for the topics in which I am involved.