Tax Questions For Return

[optimuslives]

Hello all -

I was granted a discharge in April of 09 and am preparing to file my taxes this year. However, I got a 1099-C from a loan assistance company that helped me and my ex-wife get our original house loan. We surrendered the house in the bankruptcy, and the bank foreclosed upon it in August, after the discharge.

As I understand it, even if we had an FHA loan, which is what this amounts to, then I am not held liable to report it as income, unless I have misread it? I contacted the issuing company, and they said it was for PMI cancellation and apparently didn't know that the house was foreclosed upon, and were going to call me back, but haven't yet. I have read form 982 is what I need to do, but was curious what the gurus here thought?

[optimuslives]

Ok, found the actual documentation. It is a homebuyer assistance loan which helped with the downpayment for the house. Since it was tied to the house, am I liable for this, or should it have been discharged when everything else was?

http://www.nifa.org/downloads/formf1006.pdf