@jsedigo as I understand what the situation is :
(a) You ( an entity ) bought a property that was owned by a trust.
(b) Trust is the lender of record and therefore you pay the mortgage interest to this trust.
Therefore , to recognize this interest expense , the trust ( the recipient of the interest income ) needs to issue you a 1099-INT . For you it in an expense while for the Trust it is an income.
Does this make sense ?
