@PoconoRick can you walk me through that in a little more detail? Reverse mortgages are normally a way to receive monthly payments for living expenses for someone who is 'house rich and cash poor'.
so what you are stating is that 10 years ago, the 1st mortgage balance was paid off by a reverse mortgage and that for 10 years the mortgage company just kept track of the interest that accrued? and then the accrued interest (and the loan amount) were paid off shortly after she passed?
in that case, the reserve mortgage loan balance would be "acquisition debt" and I could see that the interest would be deductible upon payment.
mortgage insurance premiums are no longer deductible, so that simplifies some of your decisions.
