MHA payments applied fully to principal after permanent mod approved?

[TickedInCA]

I'm wondering if anyone else has run into the same issue. I had a permanent loan mod approved last November, and when I received my Form 1098 for 2011, it listed my interest paid as $0. When I called B of A, I was told that my interest had been posted in January 2012, because my payments had been in a temporary hold status while they processed the modification and hadn't been reported until January. They said that my 2011 interest would be included on my Form 1098 for 2012. Of course, that doesn't help me, because I can't claim 2011 interest in 2012 no matter what B of A's computer system says.

After I brought in a representative from my US congresswoman's office, my complaint was escalated to the Office of the President. Initially, they repeated their assertion that it wasn't possible to correct my 2011 Form 1098 to reflect the interest that I actually paid in 2011, and told me again that my 2011 interest woud be posted in 2012. When we pushed back against that claim, another person from the OOTP told my congresswoman's representative that the entire balance of my 2011 payments had been applied to principal, so I actually hadn't paid any interest in 2011.

Has anyone else run into this situation?

[fredk]

2 things could have happened

1. they did apply all payments to principal - if so dont complain just drop it
the reduction us worth much more than the savings from the itemized interest deduction

2. they did post it in 2012 - if so ask for the amount posted
then on your tax return scedule A line 11 enter that amount
attach an explanation to your return explaining the situation

[Evan Bedard]

Fred has very good advice, I believe scenario #1 may be correct in which they indeed applied all payments last year towards the principle after the modification was finalized..