Can I deduct the interest when my house is through personal financing and not through a bank? I am unaware if the house is being financed by my seller from a bank or not

[t_whicker-hotmai]

The personal financing was through a lawyer with an amortiztion schedule breaking down the principle and interest per payment.  The house is registered through us for county records and property taxes.

[rjs]

You have what is called a seller-financed loan. It doesn't matter to you whether the seller is dealing with a bank. You can deduct the interest as mortgage interest if the loan is secured by your house. That means that if you default on the loan the lender (i.e. the seller) can take your house to satisfy the loan. The loan also has to be recorded as a mortgage with the appropriate local authority. You could ask the lawyer who arranged the loan whether it is secured by your house and whether it is properly recorded.