If my mortgage company sold my loan to another lender is that considered a new mortgage?

Forum|Forum|6 years ago
June 6, 2019
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TurboTax Deluxe Online

Best answer by MichaelDC

No. It's the same mortgage for tax purposes. You should be getting two separate 1098 forms soon from both mortgage companies.

If, by chance, it was a refinance with points paid on the refi, those points would have to be spread out over the life of the loan.

janesritual

Hi what do we do about the loan balance question for the 2nd 1098?

jelpmac

My mortgage was sold to another loan company on Dec 3 2019 and they sent a 1098 for 1/2 the State Property taxes they paid. The new loan company also paid 1/2 of my State property tax but did not send a 1098. They did send me an email showing the State taxes they paid in December 2019. How do I do the 2nd 1098?

Anonymous

most like the payment you made after the loan was sold was in January 2020 so there is no interest deduction

so you don't need a 1098

save yourself a headache.

your choice to do 1 of following:

to the 1098 you are entering enter add the second half of the RE taxes. this is for tax return purposes only and will not cause problems with IRS

don't enter any of the real estate taxes through the 1098. total them and enter in the itemized deduction worksheet

MichaelDCAnswer

Employee

No. It's the same mortgage for tax purposes. You should be getting two separate 1098 forms soon from both mortgage companies.

If, by chance, it was a refinance with points paid on the refi, those points would have to be spread out over the life of the loan.

mittelstaedt-1

The Turbo Tax software does not seem to match this answer exactly. The 1098 for the purchased loan (new lender) has the original loan date but has a zero balance in box 2 for the loan balance at 1/1/18. If I enter zero, the software tells me that I need a balance for 1/1/18. I can enter the balance at 1/1/18 for the original (sold loan), but I also have this amount for the original loan 1098. I can make the program work, but workaround does not seem accurate. It overstates the actual amount of debt I have at 1/1/18.

Takethemoney

My mortgage was sold to a terrible lender in September. I only received one 1098 from the original lender but no 1098 from the current lender. I tried to check from their website but the site crush every 5 seconds and won't load properly. What can I do and how can I fill out the tax form?

DianeW777

Perhaps you can print the year end statement that should show all of your payments each month. This would allow you to total the interest payments made to the second lender.

Another option would be to see what the principal balance was after you made the last payment to lender one, then check the principal balance on December 31st. Subtract these amounts to find the total principal payments to lender two.

Add all of your mortgage payments made to the second lender, then subtract any escrow portion of each payment, subtract the reduction in the principal balance and the remainder will be the mortgage interest paid to lender two.
Add this amount to the figure on your 1098 received from lender one and enter your mortgage interest paid.
- IRS Publication 936 (Mortgage Interest Information)

@Takethemoney

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