Past due mortgage interest deductions A homeowner is in foreclosure for several years, and has not paid or deducted any mortgage interest during this time. The homeowner and the lender agree to a mortgage modification under which the homeowner pays the full principal and all past due interest. This amount is then refinanced into a new mortgage.
Since the original mortgage is now satisfied, along with all past due interest, can the homeowner deduct the past due interest on his taxes in the year the mortgage is refinanced? |