Update Feb. 4, 2008 — The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief.

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

I'm doing the same thing as that guy, but on a volunteer basis (Loan Advocacy).  Hmmmm.  Perhaps I should charge a little something.