Ebaines- Thank you for your quick reply! So, since I received a 1099-A then I should not expect to receive a 1099-C? (is one or the other issued?) I don't want to have to file an amended return later or pay penalties, etc..
Should I call the IRS to inquire?

Thank you!

First - please don't start a new thread to ask a follow-up question - it's better to keep the conversation as one string.

In general you would receive either a 1099-A or a 1099-C, but not both. As I pointed out - since the FMV was greater than what you owe there is no tax issue for you on this - and they won't send a 1099-C.