Question on Mortgage/HELOC Arrearage Payments

[switch625]

While paying on a Ch 13 plan, when you get 1099 from your lender in January does it have the amount of arrearage payments that are made and if it does show these payments, does it separate what portion of the arrearage is principal, interest and escrow that was past due and now paid? Just curious if I could claim past due mortgage interest and other deductible expenses that are in the arrearage in my 1040. I'm guessing that the lender doesn't do this.

[BNKRPTinNC]

While paying on a Ch 13 plan, when you get 1099 from your lender in January does it have the amount of arrearage payments that are made and if it does show these payments, does it separate what portion of the arrearage is principal, interest and escrow that was past due and now paid? Just curious if I could claim past due mortgage interest and other deductible expenses that are in the arrearage in my 1040. I'm guessing that the lender doesn't do this.

We had around $8k in arrearage (mortgage) that was paid thru the plan, along with the regular mortgage payment. My 1099 reflected total interest paid but did not break it down. I did not pay into escrow as everything was paid outside of plan (taxes, insurance, etc.). In fact someone on this forum enlightened me as to why I had paid so much more in interest for the first three years of the plan than the final two as the arrearage was paid off about 2/3 of the way thru Chapter 13. I just claimed what the 1099 stated for each year.

[spidge]

Same here. I will have the "extra" interest right off drop off at the end of this year and it will reduce it considerably. Will have to make withholding adjustments for taxes to balance it out.
625, it is all based on the year you paid it not from when it was due, from what I understand.

[justbroke]

When I was in a Chapter 13, my 1098 Mortgage Interest statements did NOT include my arrears payments! I had an interest only loan at the time and not one of the arrearage payments ever showed up in the two years I was in the Chapter 13. I manually calculated them based on the Trustee's site (13DataCenter).

The moral is... definitely check to make sure the 1098 actually reflects what you paid. That would be your continuing payments through the plan, alongside the arrears paid through the plan! I actually liked that I had all that extra interest as my refund was over $7K the first year (before my plan was confirmed).

[switch625]

We had around $8k in arrearage (mortgage) that was paid thru the plan, along with the regular mortgage payment. My 1099 reflected total interest paid but did not break it down. I did not pay into escrow as everything was paid outside of plan (taxes, insurance, etc.). In fact someone on this forum enlightened me as to why I had paid so much more in interest for the first three years of the plan than the final two as the arrearage was paid off about 2/3 of the way thru Chapter 13. I just claimed what the 1099 stated for each year.

So your lender lumped your payments and arrearage pmts together resulting in higher principal & interest payment for the year?

[BNKRPTinNC]

So your lender lumped your payments and arrearage pmts together resulting in higher principal & interest payment for the year?

Nah. The trustee was paying the arrearage with one payment and another for the mortgage. The interest that was part of the arrearage was lumped in with the mortgage interest for each year. There was no breakdown of how much or what amount of interest was paid for each, just the statement (1098 not 1099, my bad) at the end of the year. For the first three years I thought I was paying interest only as the total interest for the year was roughly what my mortgage payments would have been for 12 months. Someone smarter than me, on the forum, pointed out that the arrearage had interest too. I couldn't access info online while being in the 13 and the only thing the mortgage company would tell me was how much the balance of the loan was (not the arrearage), which really wasn't letting me know what exactly was going on. 13datacenter allowed me to see what was being paid each month but there was no interest breakdown on the mortgage end of things.