Client received a 1099MA from HUD EHLP Program. Bx 1 Total State HFA/HUD and homeowner mortgage payment. 2. is State HFA/HUD assistance payments 3 is Homeowner mortgage payments, a 1098 from BoA Bx1 is mortgage interest paid by borrowers/homeowners and a 1098 from the company who bought the loan Bx1 is mortgage interest paid by borrowers/homeowners.
The HUD 1098MA does not separate principal and interest in any of the three boxes. BoA 1098, likewise. The third 1098 is known to me to be all from TP mortgage payments.
I know that the bank pays-off in-arrears interest first. What I don't know is whether they took the monthly payments from the TP and put to interest owed, then took the monthly payments from EHLP and put it to interest owed first, then to principal with any monthly balance remaining or ??????
According to TP they only received the 1098's and no detailed explanation. I believe this from BoA and they are the only ones, I suppose, who can answer how much interest was actually paid by the TP or, ??????
The TP received a 50k non-recourse loan from EHLP. 10K per year for 5 years will be forgiven and no 1099c will be issued. Do I make an adjustment for the 10K or the entire amount of the EHLP loan? Do I deduct the full interest paid by both EHLP and the TP due to the nature of the EHLP loan? I am sure I will be able to get the interest amounts paid but don't know what I can deduct and or not deduct for 2012.
The HUD 1098MA does not separate principal and interest in any of the three boxes. BoA 1098, likewise. The third 1098 is known to me to be all from TP mortgage payments.
I know that the bank pays-off in-arrears interest first. What I don't know is whether they took the monthly payments from the TP and put to interest owed, then took the monthly payments from EHLP and put it to interest owed first, then to principal with any monthly balance remaining or ??????
According to TP they only received the 1098's and no detailed explanation. I believe this from BoA and they are the only ones, I suppose, who can answer how much interest was actually paid by the TP or, ??????
The TP received a 50k non-recourse loan from EHLP. 10K per year for 5 years will be forgiven and no 1099c will be issued. Do I make an adjustment for the 10K or the entire amount of the EHLP loan? Do I deduct the full interest paid by both EHLP and the TP due to the nature of the EHLP loan? I am sure I will be able to get the interest amounts paid but don't know what I can deduct and or not deduct for 2012.