expiration of Mortgage Debt Forgiveness Act of 2007

We are now halfway through 2012, the last year of the Mortgage Debt Forgiveness Act. At present there is not much news out there on whether or not it will be extended. If you are depending on its extension while pursuing a short sale, deed-in-lieu, you are taking a big risk. It may pay off and I hope that it does but I will not be taking the same chance. At this time in my own adventure in loan default, the bank has approved the request for a short sale. Now I guess it is up to the bank and the buyer(s) to come to an agreement about the price and other elements of closing. I anticipate being out of the house in 2-3 months, maybe longer but definitely by the deadline of 12/31/2012 to have the mortgage debt amount that will be forgiven (over $100,000) exempted from taxation.