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Sometimes.
My experience is that often, but not always, the funding lender sells the loan immediately to the permanent mortgage owner, or at least to the account servicing agent that may handle the funds even though the mortgage changes hands every year or two. So you may receive two 1098 forms, from different companies at different times. And your clients may not even recognize the name of the first one, so they may through it in the trash along with their EIP#2 debit card.
If it's a $100,000 loan at 3%, you know that a full month of interest is $250 (to start), so if the 1098 from the current lender shows something close to $750 for three months, you know it doesn't include the $200 interest paid for 20 days at closing.
Escrow amounts are just that. They are not expenses until paid from the escrow account.
Taxes and insurance are usually escrowed. Interest is not.
If you are talking about the prorated amounts up to the purchase date, then I agree with Bob.
Get the Closing documents. It shows everything.
Oh, "we receive" does this mean you are using TurboTax? If so,
You seem to be lost on the internet.
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Thanks.
My reading was that "escrow" meant the escrow company that buyer and seller hire to close the transaction. It hold the seller's deed in escrow until the buyer and the buyer's mortgage company deposit the required funds in escrow. Then it sorts it all out and shows its work on a HUD-1 or similar closing statement.
My interpretation was that it is the escrow account held by the lender to pay taxes and insurance-usually about 6 months of the estimated annual expense in my neck of the woods.
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