Signed house over to fannie mae. Now lease it back from fannie mae. Received a 1099 a. Box 5 was not checked meaning I am not responsible for debt. However, the loan balance showed the correct figure but the FMV showed 0. Do they mean I have income equal to the loan balance. I also filed bankruptcy two years ago. If I'm not responsible for debt do I need to report this?

Probably not. The lack of a check mark probably means you live in a non-recourse state.

Check with Fannie Mae to see if you are getting a Form 1099-C. If not, you are free of the debt AND are not required to report the implied income from being released from the debt.