Legal Question in Credit and Debt Law in Florida

It's possible, depending upon what they do with any remaining debt. Assuming they sell your property for much less than you owe, then yes the lender can 1099 you if they forgive the remaining debt. However, your mortgage lender is equally entitled to pursue a deficiency judgment against you for the remaining balance. I suggest that you speak with a bankruptcy attorney and discuss your options. Bankruptcy or a short sale may be a better option. Best of luck.