Am I still liable for tax on a 1099 with a face Shortsale Foreclosure?

My house is near foreclosure. The property is worth about 1 / 2 the amount of the loan. Since the loan (s) is a 20/80 of the house is not covered by PMI. If the bank accepts a Shortsale, Am I still liable to tax on debt forgiveness under a 1099 congressional act foregiveness debt?

You will not succeed with federal taxes if they forgive the difference. State taxes are a different matter entirely. Many performances will not forgive the difference and who will come after you for the rest. That could cause the property taxes, wage garnishment and possibly even lead to bankruptcy. Many short sales agreements include a clause forgiveness, but make sure it's there. Good luck!