Yes, If your mortgage was transferred, or refinanced, the original loan will have been paid off and the principal associated with it will be zero.
Under normal circumstances the only mortgage on a specific property that will have a principle due is the one that is in effect at the start of the new year. all others will be zero.
The IRS instructions for completing Form 1098 state that box 2 should be the amount of principal outstanding 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 and the amount should be "0".
Entering '0' into box 2 in your tax return is the correct way to handle a loan that has been closed out.
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