I do need to amend my previous answer.
As to you deducting mortgage interest, you can deduct interest you pay on your main home and one second home. This house is not your main home. You can call it your "second home" as long as you aren't deducting mortgage interest on any other second home. I believe that being on the mortgage would allow you to consider this as a second home even if you are not on the deed, and deduct the part of the interest you actually pay.
The rest of my answer stands as written.
