I invest money with a mortgage company that uses the funds to provide mortgages for homeowner loans, construction loans, etc. Money from multiple investors is pooled for these loans. The interest that I receive I list on schedule B.

The mortgage company recently foreclosed on a property in which I am an investor. I had direct expenses due to lawyer fees. I'm not sure where to deduct these expenses.

Do I deduct these expenses on Schedule A where they are subject to the 2% AGI limitation (Other Investment Expenses)?