Grrrrrr....Taxes

So we went to get our taxes done yesterday. That was fun...NOT! We give the tax guy the W-2's, the paper from unemployment, and our 1099-A from the mortgage company. All is going well, until---the tax guy looks at it and says "where did you get this?". He apparently has never seen one before, and doesn't know what to do with it! So he calls his boss over, and she doesn't know what to do with it either! They told us to come back today, that we could finish our taxes up then. But when we call, they say that they haven't figured it out yet, and the person that knows what to do won't be in until tomorrow.
What it boils down to is that they may count the principal amount that we owed as a gain, and the amount between what we owed and what it sold for as a loss. Makes no sense to me, but I also found out that the amounts from the 1099-C (and A) are supposed to be forgiven for 2007, 2008, and 2009. So we might not have to worry. Or, on the other hand, we might. Hard to say right now. Should hear back sometime after 9am tomorrow, so prayers would be appreciated.