Client went thru a Loan modification thru the Making Home Affordable program (MHA). The principal balance was $281,800.00.
The modified principal balance includes unpaid and deferred interest, fees, & other costs, but excluding unpaid late charges, unpaid amounts. The new Principal balance of the note is $322,293. "New Principal Balance"...interest will now accrue on the unpaid interest that is added to the outstanding principal balance.
$73,000 of the New Principal Balance shall be deferred (the Deferred Principal Balance) and you will not pay interest or make monthly payments on this amount.
The New Bearing Principal Balance and this amount is $249,093. Interest at the rate of 2% will begin to accrue on the Interest Bearing Principal Balance on the Jan 1st, 2013 .
Ok... The 2013 Mortgage Interest Statement says Interest of $9,052.
My question is....does he get to claim all of that? And if so is any of it subject to AMT adjustment?
Anything else I need to be aware of?
I would appreciate any help.THANKS!!
The modified principal balance includes unpaid and deferred interest, fees, & other costs, but excluding unpaid late charges, unpaid amounts. The new Principal balance of the note is $322,293. "New Principal Balance"...interest will now accrue on the unpaid interest that is added to the outstanding principal balance.
$73,000 of the New Principal Balance shall be deferred (the Deferred Principal Balance) and you will not pay interest or make monthly payments on this amount.
The New Bearing Principal Balance and this amount is $249,093. Interest at the rate of 2% will begin to accrue on the Interest Bearing Principal Balance on the Jan 1st, 2013 .
Ok... The 2013 Mortgage Interest Statement says Interest of $9,052.
My question is....does he get to claim all of that? And if so is any of it subject to AMT adjustment?
Anything else I need to be aware of?
I would appreciate any help.THANKS!!
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