Does Homeowner need to 1099? Experienced help would be grateful

[Greg P.]

Hello, I am helping a home owner execute a short sale. The problem is, he is worried he will get a 1099 for the difference of what he owes and what we negotiate the short sale for. He doesn't want to have this short sale be taxed as income. Does anyone know if this is true and how we can avoid it if possible? Thanks!