Home Equity Debt Forgiveness?

We short sold our Illinois home (our primary residence) and had a second mortgage through the same lender. The remainders of both loans were forgiven by the lender due to our debt situation. It seems like the first mortgage will be tax free due to Mortgage Forgiveness Debt Relief Act. But for the second will we need to prove insolvency or will it also be tax free due to the MFDRA? Thanks for any help!

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