I am in the same exact situation
My home was recently foreclosed by the bank and sold at auction on 7/14/2009. I however moved out of my home before foreclosure in 2/2009. I have recenty received a 1099-A from the bank instead of a 1099-C. Did I received a 1099-A instead of a 1099-C because I move out before getting evicted? Can I still qualify for the Governmet Mortage Forgiveness and file a form 932 with a 1099-A? Based on the information that i am reading online, there appears to be a lot of mixed answers and according to a H&R rep she advised me to contact the bank to attempt to get a 1099-C or I may not be able to apply for the 932 and have to file insolvency of debt instead, is this true? It is imposible for me to pay taxes on a difference of $150,00 between the outstanding principle and Fair market value listed. Does any one know anything about capital gains? I read somewhere where someone mention you can write off up to $250,000 in capital gain, so if one has to claim the difference as income on their taxes, can they write off the difference as capital gain? Any help or knowledge that anyone can give will be greatly appreciated. I am so confused and stressed.