Mortgage Forgiveness and Income Tax Relief

Congress may or may not renew the Mortgage Forgiveness Debt Relief Act that provides an income tax exemption for "income" realized when a mortgage lender agrees to reduce the principal owed or forgives a debt completely. Some say struggling mortgage holders need this relief. Others say that this is an unfair benefit to people who borrowed more than they should have and now the taxpayers are taking the hit for them.

What do you think?