(Note: The MDFA expired at the end of 2013. This is an old post that and it was not extended through 2014-sorry folks. TS)
The MDFA is an important law that allows homeowners to avoid being taxed on foreclosures and short sales for their primary residences. It was supposed to expire at the end of 2012.
This is not passed yet, but at least it’s in the works
*Thanks to sharp-eyed Chris D. for pointing this out.