Property Taxes Mortgage Interest

[nohope]

Stopped paying my mortgage September 2010. I received the tax form from my mortgage company indicating interest and property taxes paid. The interest is correct - it is the amount I paid up to September 2010. The property tax amount is incorrect - the bank paid my property taxes in October 2010 but there was not enough money in my escrow account to cover it. In other words, the amount paid to the town is correct but the amount I paid to the bank is less than what was paid to the town. What amount do I use when completing my income taxes for 2010?

[tobee43]

did you have an escrow account??? if you did..the 1098 is what has been reported to the irs...deduct it on your taxes...

the cost of the foreclosure is passed on to you...take the deduction...correct or NOT correct ...i was what was reported.....

[justbroke]

Exactly, go by what's on the 1098. The bank will recover any shortage through billing you.

[catleg]

The mortgage servicer is responsible for paying for insurance and property taxes when you stop making payments, to protect their interest in the underlying asset. They get paid back first for these expenses upon foreclosure sale. You can only deduct what you've paid, as reported on the 1098.