forgiving the taxes

[cobjosh]

ok I am confuse and the time is coming were the bank will either take the home in forclosure or do a deed of lui.
but my question is if the house goes into forclosure does the bank give you a 1099, for the differnce of the money that they lost. and I would have to pay taxes on that
and If I do a deed of lui does the bank also give a 1099. for the differce of the market value.
and how does that law work that you if you foreclose on your home from 2005 to 2009 they will jus forgive the differce.
if some body has any info I would greatly appreciated.