Tax refunds, after BK7. Loan interest...

[newtobkforum]

Looking for info regarding this situation:

BK7 discharged and closed in Oct 2010.
Did not re-affirm home loan, but remained current on payments so we can live in it until credit is better and its the right time to move.

So, when we file taxes in 2011 and the following years can we write-off the interest on the house payments?
So even though the liability on the loan is gone, since we still pay interest to the loan can we write it off?
Will the lender, BofA, still send the annual doc showing interest paid(1099?) for taxes.

Hoping someone whom had BK7 a few years ago and does this can help...

[HHM]

1. Yes, you can take the mortgage interest deduction. Reason being, you ARE paying the interest
2. The bank "should" issue the 1099; they are required to by IRS regulations regardless if the underlying "loan" was discharged in bankruptcy.

[newtobkforum]

1. Yes, you can take the mortgage interest deduction. Reason being, you ARE paying the interest
2. The bank "should" issue the 1099; they are required to by IRS regulations regardless if the underlying "loan" was discharged in bankruptcy.

Is this a common thing people do when in my situation?

[Freddy03]

Is this a common thing people do when in my situation?

This is my plan

I think it's pretty common when you have a house underwater and not in the position to surrender the house.

[keepmine]

I didn't reaffirm my mortgage and continue to pay and receive a 1099 every year.
Also, your annual statement will carry a phrase "for informational purposes only and not an attempt to collect a debt discharged in bk".
All in all, pretty routine.