Too many missing facts and really not a question for a forum such as this.
I don't believe the escrow accounts are a factor. These are just held to pay taxes and insurance and don't come into play for the gain or loss on foreclosure. When the escrow $$ were received, you debited cash and credited the escrow. Now you just need to reverse that entry since the cash was taken and you no longer have that liability to pay the expense related to the escrow.
For the gain on foreclosure, I will link an article that should help you determine this amount as it depends on whether the debt was recourse or nonrecourse.
https://www.thetaxadviser.com/issues/2022/jul/tax-consequences-real-property-foreclosures.html
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
