A mortgage reinstatement is where person X cannot pay any mortgage payments so their mortgage goes into foreclosure. Person Y comes along and either a) pays the entire outstanding loan balance of hypothetically $153,246 or b) does a mortgage reinstatement in which only the accrued mortgage payments which have not been made, (from when person X stopped paying until today) of hypothetically $37,296 are made and person Y agrees to pay future mortgage payments as they come due.
In this example, the future payments are roughly $153K minus $37K or $116K. My question was, if Person Y pays the accrued $37K (the payments needed to bring the mortgage current) is any portion of that tax deductible? Thank you!
