Short Sales and 1099 Taxable Income

[kimmyraed]

My question involves real estate located in the State of: Michigan

Currently dealing with a home owner that moved to Barbados 3 years ago. They purchased and lived in a Detroit condo, then later moved out of the country. They rented it out a couple of years and now its vacant. Some questions: Can or will they qualify for the Bush Mortgage Relief Act if they can prove insolvency? Now that they live in Barbados, how does/will a 1099 affect them, if at all? If so, how could the IRS collect?

Any help would be appreciated!

[flyingron]

Info here: http://www.irs.gov/pub/irs-pdf/p4681.pdf

My read is that if the home was their main home at the time the loans were taken, they can if they otherwise qualify.