For investors that deal in Short Sales, there is a new tax relief for homesellers who complete a short sale.

In the past, the forgiven debt could be taxed by the IRS. 

Under The Mortgage Forgiveness Debt Relief Act of 2007, up to $2 million of the canceled debt on a principal mortgage is now tax free. The new law does not apply to investment property.

Source: Short Sale and Foreclosure Tax Break

This may mean that you may have to update your disclosures.  It may also increase the incentive for home owners to complete the short sale with you as their canceled debt is not taxable.  Notice that this is for primary residence only property.