Subprime Mortgage Crisis One of the more unpleasant surprises to emerge from the subprime mortgage crisis was the realization by many unfortunate homeowners that foreclosures, short sales and other repercussions of defaulting on the mortgages on their “underwater” homes also triggered serious income tax consequences. In those cases, homeowners whose property had dropped in … [Read more...] about Subprime mortgage crisis: California extends income tax relief for forgiveness of mortgage debt