Does anyone know how 1099C works from a lenders point of view.

[Roma Korenyuk]

I'm trying to figure out the IRS 1099C from a lenders point of view. If and when it should be sent, or if it should be sent at all. How would the total be figured out. Difference between taking the property back as REO or having the property sold at the auction. Also, can any foreclosure fees and delinquent taxes be added?

Thank you.