What is the penalty by IRS for receiving a form 1099-A for a mortgage loan on my property that went into foreclosure. The amount in box 4 is $189,320.53 is greater than the amount in box 2 which is $175,555.47

Box 2 shows the amount of mortgage principal that was outstanding on the abandoned home, and Box 4 is the fair market value of the property. Since Box 2 is less than Box 4, you consider Box 2 to be the selling price you received for the property. You can use this figure for determining whether you have a capital gain or loss and whether any capital gains is due.

See Pub 523 for details, especially "Other Dispositions" on page 5:
www.irs.gov/pub/irs-pdf/p523.pdf