There are many reasons you could get a 1099-C (Cancellation of Debt)(a foreclosure, a short-sale, a mortgage loan remodification, credit card debt, etc.).
Although the IRS generally considers cancelled, forgiven, or discharged debt as taxable income, there are exclusions and exceptions to the rule.
The Mortgage Forgiveness Debt Relief Act of 2007 provides special relief to homeowners whose qualified mortgage debt was forgiven by lenders. Under the Act, the forgiven debt can be excluded from taxable federal income.
You need to include info on your home "sale" so that TurboTax has enough information insure that you qualify for any of these exclusions.
