In the "Instructions for Debtor" related to Box 7 it says: If, in the same calendar year, a foreclosure or abandonment of property occurred in connection with the cancellation of the debt, the fair market value (FMV) of the property will be shown (in box 7), or you will receive a separate Form 1099-A.
Generally, the gross foreclosure bid price is considered to be the Fair Market Value. For an abandonment or voluntary conveyance in lieu of foreclosure, the FMV is generally the appraised value of the property. You may have income or loss because of the acquisition or abandonment.
I hope this information is helpful.
