1099 Investor HAFA short sale May 2013 with OCWEN - Please help.

I closed an Investor HAFA short sale May 2013 with OCWEN. It was approved HAFA because the seller is a retired Military Vet. The sellers just received a 1099 for $100k for the principal short amount. I thought 2013 had Tax relief for canceled mortgage debt? Please help.

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