There may be a problem.
Yes, schedule A mortgage deduction is for your main home and one second home. If you have more than one second home, you can decide which second home to deduct. And a time share is specifically listed as an allowable "second home" provided you don't rent it out.
However, a mortgage is only deductible if it is secured by the property. This is what the IRS says,
You can deduct your home mortgage interest only if your mortgage is a secured debt. A secured debt is one in which you sign an instrument (such as a mortgage, deed of trust, or land contract) that:
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Makes your ownership in a qualified home security for payment of the debt;
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Provides, in case of default, that your home could satisfy the debt; and
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Is recorded or is otherwise perfected under any state or local law that applies.
The question is whether your loan is perfected according to state or local law. This usually means that your ownership and the loan are recorded at the county records office and are available for public inspection. In most cases, you don't own any property, you own a limited right to use certain property. So your loan might only be in the time share company's books, not recorded at the county level. (Although if your loan is with an independent mortgage bank and not the time share company, then we can probably assume it is recorded.)
You may want to check your time share documents, or consult and enrolled agent (accountant who is licensed to practice before the IRS) to see if your loan meets your state and local legal requirements to be considered a "perfected" mortgage.
