Will Loan Mod Trial Payments be reported on Tax Form 1098?

[dystopia]

I paid about $8400 in Loan Mod Trial Payments this year, 2009. I was wondering if those payments will be included on the 1098 form that each lender sends out each January... Or is that money we are paying for free? I suspect it will all vanish, but it would be greatly beneficial to me at tax time if they are included.

[AzGryffindor]

That's an excellent question. Have they been putting your funds into a suspense account (like they have with mine), or have they actually been applying them towards your loan?

The 1098 is only for mortgage interest so if your payments have not been applied towards your loan (in suspense) then those payments will not count on the 1098.

[dystopia]

I made my January through April payments this past year ($12,000, but maybe only $10,000 is interest). Then I threw in the towel. Surprisingly, got a Trial Loan Mod package in late July. So I made 4 more payments: Sept through November. A total of $8,000. But my overall balance did not ever go down. They kept it in some separate escrow of some kind. My gut feeling tells me it all disappeared into a black hole and only $10,000 will be reported on the 1098.

[sahm2two]

I have been wondering this as well. Thanks!

[dystopia]

I have been wondering this as well. Thanks!

I received my 1098 Tax Form yesterday from Bank of America. Yes, they did indeed include my 4 loan mod trial payments. That is a great relief. My tax refund should be a pretty good amount... I have already scheduled my meeting with my tax guy for Feb 6th.

This will be my last refund probably forever... since I'm walking away from my property. Next year, I'll be a renter. And can't imagine ever qualifying for a home again.

[MyHAMP]

Was included in our "overview" we received this week as well.

Frankly, I also don't see a reason why it shouldn't. Those are still mortgage-payments and once they are applied after they reach a sufficient amount to cover your oldest, past due payment, it is split up in P&I as well, so yes, it should be included.

BTW, our "forbearance-interest" was included, too.

[AzGryffindor]

They still haven't applied a dime of what I've paid them in 2009 towards any payments. There's more than enough in the suspense account to make 3 payments.

I'm also still stuck with the negative entry on my transaction history showing the payments removed, yet not put back yet.

[dystopia]

They still haven't applied a dime of what I've paid them in 2009 towards any payments. There's more than enough in the suspense account to make 3 payments.

I'm also still stuck with the negative entry on my transaction history showing the payments removed, yet not put back yet.

Actually, they haven't applied a dime to my overall balance either! And my escrow balance is in the negative... I have given up trying to decipher the mechanisms by which they separate the Load Mod activity and my delinquent account status... I just am happy my 1098 reflected all of my payments made last year.. The expected tax refund is critical for me. I'm hell bent on paying off my debts in 2010 (minus the mortgage of course).

[strugglinginaz]

I have encountered some problems with my payments "posting" and I am not even on a trial mod yet! You can see the thread about this:

Your 1098- Mtg Interest Stmt- Incorrect?

Since BoA hasn't posted my Oct-Dec payments (they were the full, regular monthly payments, made on time), they did not include those amounts of interest on my 1098, making my 1098 WAYYYY short...Also, they reported me 30 days late for Oct and 60 days late for November...Seems like they just do whatever they feel like these days..

After an hour spent on the phone yesterday with this idiots, I fired off a very serious email today to Barbara Desoer's office and let them know I was prepared to take legal action for all of these errors..I also let them know that I was filing a complaint with the OCC...I received a phone call from the OOP within 2 hours. Seems that they finally kicked into action and said they had four different departments working "very hard" to get everything corrected (payments posted, credit bureaus corrected, new 1098 sent out to me) and that I should have it all fixed by Monday. If not, I will be firing off another explosive email.

I'm not playing games anymore! Oh ya- and they said that my negotiator said my documents have been sent to "quality control" and that I should be getting a Fed-Ex package soon with my loan mod info... ha! I won't hold my breath on that one...

[Jatime]

the trail period plan said: I'll pay te lender the amount set forth below (trial period payment) which includes payment for escrow items, including real estate taxes, insure premiums and other fees.

i think that this form 1098 should have the dollar amount of tax paid on my behalf by chase? o no??

I have encountered some problems with my payments "posting" and I am not even on a trial mod yet! You can see the thread about this:

Your 1098- Mtg Interest Stmt- Incorrect?

Since BoA hasn't posted my Oct-Dec payments (they were the full, regular monthly payments, made on time), they did not include those amounts of interest on my 1098, making my 1098 WAYYYY short...Also, they reported me 30 days late for Oct and 60 days late for November...Seems like they just do whatever they feel like these days..

After an hour spent on the phone yesterday with this idiots, I fired off a very serious email today to Barbara Desoer's office and let them know I was prepared to take legal action for all of these errors..I also let them know that I was filing a complaint with the OCC...I received a phone call from the OOP within 2 hours. Seems that they finally kicked into action and said they had four different departments working "very hard" to get everything corrected (payments posted, credit bureaus corrected, new 1098 sent out to me) and that I should have it all fixed by Monday. If not, I will be firing off another explosive email.

I'm not playing games anymore! Oh ya- and they said that my negotiator said my documents have been sent to "quality control" and that I should be getting a Fed-Ex package soon with my loan mod info... ha! I won't hold my breath on that one...