The IRS instructions for completing Form 1098 state that box 2 should be the amount of outstanding principal on the mortgage as of January 1, 2021. If the loan was no longer being serviced by that company, there would be no outstanding principal on that mortgage.
Entering '0' into box 2 for the first mortgage in your tax return is the correct way to handle the situation.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
