In article <0ad7bf9f-a0f1-49db-b331-0f362226831e[at]x41g2000hsb.googlegroups.com> ,
Personable Tiger <PersonableTigerontheWestCoast[at]yahoo.com> wrote:

- quote -

Per law, it's not a new mortgage. Proof: You didn't pay a mortgage
recording tax, did you?

Seth

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Okay, it's routine, but it still might be a "loophole," perhaps? I
have tried looking up IRS publications and Lassers--I have two years
at H&R Block and that's about my level currently--and they don't
really cover this in detail. Tax law seems to be running behind
common practice. So, I don't know if it's that much of a stretch to
conclude . . .

New company --> New mortgage ? ? ? (per law and/or gray area, not
necessarily logic)


-Tiger


What would really help me is a link to a readable part of the tax code
itself. That would help take my skills to a new level. Although I do
know that a lot of tax prep is right-brain feel, and playing the poker
hand so to speak.

And at H&R, I really do try for my clients, as many of my co-workers
do as well. The bad parts, well, the loans are bad, the "cross-
collection" even worse.

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Alan wrote:
- quote -

Right, that's what I assumed you meant, and answered above. It's 'no'.
The servicing change is more than routine, most mortgages are sold into
the secondary market and/or serviced by a third party.
Joe

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joetaxpayer wrote:
- quote -

was amortizing and wanted to know if the lender sold the note,
would that be considered a refinancing so he could write off the
points.

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Alan wrote:
- quote -

What does that expression mean?
A new mortgage when buying a home allows one to write off the points. A
refinance must be spread out over the life of the loan. The reassignment
of the servicing is meaningless. It has no impact to the mortgage holder
other than he send his payment to a new address.

He may not take the points at once unless he sells the home or
refinances again.

Joe
www.blog.joetaxpayer.com

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Personable Tiger wrote:
- quote -

no "cashing in of points."

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Client re-financed home in February. The mortgage company immediately
sold the paper to another company. Now, I'm aware that the
conventional answer is that this is not a new mortgage, it's just
selling the paper, BUT . . . advocating for the client, trying to find
a way. They are making the mortgage payments to a new company.

Is the IRS really this clear on this?

-Tiger

========================================= MODERATOR'S COMMENT:
- This is very common. What exactly is the concern? The bank that
wrote the mortgage sents the homeowner an alert regarding the servicing
transfer, and the new servicing company sends a hello letter.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >