Debt reduced through mortgage restructuring and mortgage debt that is forgiven in connection with a short sale or foreclosure, generally qualifies for the relief.

Usually best to try and restructure if possible.  

Around 2011 (maybe 2012ish) there was an upswing in home values because of military restructuring that is now in full effect (i bought my short sale after this up swing).

Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

Greece’s public debt load, even after the restructuring of Greek debt a few years ago, has swelled to 175% of GDP.

I went back to the bank and restructured the loan to be amortized over thirty years and was intending to hold for a rental for a couple of years. 

If the mortgage is paid as per the terms till the end of the loan term, the new buyer lender will get the P&I payments from the borrower for the remaining months of loan term from when he/she bought the note.If the borrower defaults on the payments, it is the new buyer lender's job to evaluate various avenues like loan restructure, deed in lieu, refinance, foreclosure and arrive at the best possible action by discussing with the borrower.

This has a lot of banks desperately trying to restructure their books in order to stay healthy, but it doesn't take too many multi-million dollars loans to go south and hurt your bottom line. 215 banks have closed this year alone if that gives you an idea.

Strategies are to a) restructure and make performing (to hold/collect or sell note later) or b) foreclose and secure the property for sale.

However, as a practical matter they rather the parties reach an agreement themselves, where they can just make sure it’s reasonable for the debtor, rather than impose a settlement.The majority of bankrupts end up defaulting on the restructured plan.