[mo]

“Wait till the IRS hits her with income taxes on the $48000 dollars....”

they won’t even think of it...trust me...look up her party affiliation...and sit back and enjoy, you and I and our responsible children and grandchildren paying it off.....

[PUGACHEV]

Charged off mortgage debt, if the debt relates to the purchase or improvement of your principal residence, is no longer taxable income, at least until the The Mortgage Forgiveness Debt Relief Act of 2007 expires in 2012. It probably wouldn't have been income in her case anyway, because I'm guessing she was insolvent at the time of the charge off.