Hello!
First, my condolences on the loss of your father.
If you are legally obligated to pay the debt, you can claim a deduction for the mortgage interest paid on your father's loan if you qualify to itemize your deductions. Here is a link to our support site with detailed information on What Are Itemized Deductions?
Your question on handling of the deed is outside the scope of this forum, apologies.
I hope this information answers your question. If you found it helpful, please say "Thanks" by clicking the thumb icon below. If you found it to be the best answer, please click on "Mark as Best Answer".
Elizabeth W., EA
