I received a 1099-a. box 4 is more than box 2. do I owe the differnce in taxes. When I purchased the house in 2006 at the height of the market the fmv came in at 156,000 , I paid 146,000. Box 2 now states 143,000 / box 4 now states 153,000. What is my situation in this matter. Any help would be greatly appreciated.

No, you do not owe taxes and you do not need to worry about this form. It's for your information only. The bank wrote off $143K in principal on your mortgage (box2) and in return they got a property actually worth $153K (box 4). So the bank came out OK, and did not actually have to forgive any of the loan. Meanwhile you effectively sold the prperty to the bank for $143K, which is less than your purchase price of $146K, so you do not have a capital gain on this. Hence nothing here to report on your taxes.