Thanks again, Critter#2. That is the frustrating part, it is NOT a "seller financed loan", it is a private loan. However it is also a mortgage loan, as it's backed up by Promissory Note / Deed of Trust, so borrower needs to report it as mortgage interest paid, on Sch A line 11 (no 1098 received). Now, best thing seems to be I claim on Sch B as interest received, and state the borrower Name and TID (SS) #, IRS can match it up. I wish I could find an official IRS statement that clarified this situation.
