azwyo

My question is regarding the foreclosure tax law that is not required for homes foreclosured on in 2007-2009.

We had to move out of state because we had to move closer to my dad to take care of him. We tried selling our house. Had it sold 2 different times and both fell thru. Living so far away it was difficult to try and deal with the house. So the bank is foreclosing on the house May 2009. This house was once our primary residence but we moved in 2007. We bought the house April 2005 and moved out March. 2007. Does the tax law exclude us from having to pay foreclosure taxes or will we have to pay taxes on the amount of the house loan that is being foreclosed. If we do have to pay taxes on it what is the pecentage.