Question

How do I fill out "loan balance" page for a mortgage that sold our mortgage to a different lender?

Forum|Forum|3 years ago
February 1, 2023
1 reply
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My mortgage company sold our mortgage to a different company. How do I fill out the following questions? 'Enter your loan balance as of January 1, 2023, or the final principal balance if you paid off this loan in 2022' & 'Enter the date you made your final payment, or leave blank if you haven't paid off your loan'.

Do I fill in "0" and the last date I made a payment to that particular company? or, something else? I didn't pay off this loan, it just changed companies because they sold it, which is why I'm not sure.

TurboTax Premier Online

P

PattiF

You will enter the information on 1098 exactly as shown.

Please follow these instructions found in a TurboTax Help article on how to enter the information when your mortgage was sold if you have forms from both mortgage holders:

Enter the original (sold) loan first

Sign in to TurboTax and select Pick up where you left off or Review/Edit under Deductions & Credits.
Select Show more next to Your Home and Start or Revisit next to Mortgage Interest and Refinancing (Form 1098).
Answer Did you pay any home loans in 2022? and Continue.
You can either sign in to your financial institution and import your 1098 forms, or select Change how I enter my form.
Next, you can either upload a digital copy or Type it in myself.
Continue through and be sure to enter this 1098 exactly as it appears.
Answer the questions, and when you get to the Let's see if this is the most recent form for this loan screen, answer No to Is the 1098 you're working on now the most recent for your loan?.
On the next Let's get some details about this loan screen, answer Yes to Is this the original loan you used to buy your property?
Select Continue to be taken back to the Your 1098 info so far screen.

Then enter the 1098 for the new loan

On the Your 1098 info so far screen, select Add another 1098 and continue through to either import or enter your information manually.
Answer the questions accordingly and complete your 1098 info exactly as it appears on your form.
On the Let's see if this is the most recent form for this loan screen, answer Yes to Is the 1098 you're working on now the most recent for your loan?
On the next Let's get some details about this loan screen, answer Yes to Is this the original loan you used to buy your property? Even though the loan is with a new lender, it's still considered the original loan for this calculation.
When you're all done, you'll see both your forms on the Your 1098 info so far screen. You can Continue through to finish and file your return.

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J

jmphelps13Author

I did this exactly as you stated, then when I hit "continue" it took me to a page that said "Let's wrap up your mortgage interest deduction", where it said both my 1098 Mortgage Lender Info pages needed review. When I go to this page and click "Review" it has two questions:

1. Enter your loan balance as of January 1, 2023 or the final principal balance if you paid off this loan in 2022.

2. Enter the date you made your final payment, or leave blank if you haven't paid off your loan.

For my "OLD" mortgage lender, do I fill this in with my ending principal balance when they sold my loan, and leave the "final payment date" blank? Or in the final payment date, do I write "11/1/2022", which is the final payment I made to their company?

PatriciaV

Please review your entries again to be sure you did NOT check a box to indicate that either 1098 was a refinance. Since the loan was sold to another lender, you did not refinance. In some cases, checking this box can result in the questions you are seeing.

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