I can’t find anything about this situation.
My house has a 1st and 2nd mortgage (Home Equity Loan). The Home Equity loan was used for repairs & updates on the house so I’ve been claiming it all along on my taxes (the interest payments).
The house is going into foreclosure. The main mortgage is FHA insured, but the 2nd mortgage is not. I make just a small too much to be eligible for Chapter 7 Bankruptcy, which is the only way to really discharge debt.
I could do Chapter 13 (or maybe it is 11), but that is just restructuring and paying back what is owed. The 2nd Mortgage bank is willing to work with me on lower payments and longer payback time and they know the house is foreclosing – which would at least avoid lawyers fees for them & me.
I’m just wondering if anyone thinks there is any chance at all that those payments could remain tax deductible (the interest part) after the house has foreclosed and I am no longer the owner of it. The loan WAS for my home and the funds WERE used in accordance to the rules which have made it eligible for tax deductibility.
What are your thoughts? Am I dreamin’?
Tax Pro Opinion – Foreclosure/2nd Mortgage Issue?
5 Responses to “Tax Pro Opinion – Foreclosure/2nd Mortgage Issue?”
Leave a Reply
Tags:
amp,
chapter 13,
chapter 7 bankruptcy,
FHA,
foreclosure,
home equity loan,
interest payments,
interest portion,
lawyers fees,
mortgage bank,
mortgage home equity,
tax deductibility,
Recent Posts:
Related results on Tax Pro Opinion – Foreclosure/2nd Mortgage Issue?
my house has a 1st and 2nd mortgage (home equity loan). the home equity loan was used for repairs & updates on the house so i've been claiming it all along on my taxes (the interest payments). the house is going into foreclosure. ...
i'm just wondering if anyone thinks there is any chance at all that those payments could remain tax deductible (the interest portion) after the house has foreclosed and i am no longer the owner of it. the loan was for my home and the ...
...issue? i can't find anything about this situation.my house has a 1st and 2nd mortgage (home equity loan). the home equity loan was used for repairs & updates on the house so i've been claiming it all along on my taxes (the interest ...
[...] post: Tax Pro Opinion – Foreclosure/2nd Mortgage Issue? :: FHA Loan RatesSHARETHIS.addEntry({ title: "Tax Pro Opinion – Foreclosure/2nd Mortgage Issue? :: FHA Loan Rates", [...]
[...] the original post: Tax Pro Opinion – Foreclosure/2nd Mortgage Issue? :: FHA Loan RatesSHARETHIS.addEntry({ title: "Tax Pro Opinion – Foreclosure/2nd Mortgage Issue? :: FHA Loan Rates", [...]
[...] news by admin What is an 80-10-10 mortgage loan? | billeater.com [...]
[...] original here: Tax Pro Opinion – bForeclosure/b/2nd bMortgage/b Issue? :: FHA Loan Rates Author: Categories: Uncategorized Tags: Comments (0) Trackbacks (0) Leave a comment [...]
[...] the rest here: Tax Pro Opinion – Foreclosure/2nd Mortgage Issue? :: FHA Loan RatesSHARETHIS.addEntry({ title: "Tax Pro Opinion – Foreclosure/2nd Mortgage Issue? :: FHA Loan Rates", [...]