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

[nypaul61]

BUT ... if you have a mortgage over $375K entering the mortgage balance twice, you cause turbo tax to give you a haircut on your interest deduction.

How do you fix that?

[DaveF1006]

This is why you will only want to enter it once. That is in Box 2 of the 1098-T of the original loan. Report the mortgage balance as 0 in Box 2 in the second 1098 and keep your long hair.

[Edited 03-01-2021|06:08 PM PST]

[TLee4]

@VictoriaD75it may be the case that a mortgage sold to a different company _should_ retian the same outstanding mortgage principal (box 2) and mortgage origination date (box 3), but I can say with 100% certainty that this is NOT the case in my current situation.  I re-financed and my mortgage was sold within two weeks.  I have two different 1098s with different values for box 2 and box 3.  TT is not treating this cleanly.  :(

[AmyC]

You want the total of your mortgage interest that is allowable. See Sched A line 8 instructions here. The balance of the loan can limit the allowed amount.  Add the allowable interest together and use your current mortgage balance and original loan date.

Publication 936 (2020), Home Mortgage Interest Deduction | IRS

@TLee4

[lancerkind]

My opinion: 

1. for the company that didn't send you a 1098, go to their website, logon (you may need to create an account but they should have all your information), and look for "tax documents" or "documents" and find your 1098
2. call them and ask them to read you over the phone what's on your 1098.

If the above doesn't work but you have a general idea what should be on the 1098, go add that lender and fill out TurboTax with what you think your 1098 should say.

[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