With all of the foreclosures and short sales happening what happens to the points being amortized? Normally when a client refinances a loan or sells a house the balance of the points are written off. I believe with a foreclosure or short sale that they would just stop amortizing the points and then could not write off the balance because the points were part of the loan and not paid from their own funds. Since the loan is not being paid off I believe they would not be able to deduct the balance of the points. Or does anyone feel that the balance of the points can be written off even if the house is foreclosed or sold short?
Thanks for your thoughts and your input.
GTS1101
Thanks for your thoughts and your input.
GTS1101