@Carl securing of property and foreclosure is a concern for the lender. If lender A gives you a loan for property using your property as a collateral, versus lender B gives you the same loan, at the same terms w/o securing your property, how does it affect IRS? So long as you are paying interest, it is an expense out of your income.
IRS should be happy that I have reduced my total interest and deductions. They benefit from it as much as I do. It is only the lender who wants to charge me arm and leg for rental property loses.
what am I missing?
