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"In real life, I've never seen a situation in which someone was liable for the mortgage but wasn't on the title. That's not to say it couldn't happen, just like baby pigeons, I've never seen it..."

now you the case i know of, the adult son is supporting his parents and claims them as dependents on his return. however, since they also have a home equity balance outstanding, and the mortgage interest deduction is useless to them, the home equity loan was reissued in the names of the son and the parents, even though the parents are the only ones on the house title.

the son makes the interest payments on the loan, and does not worry about the title knowing that one day the house will pass to him in any case.

real life is stranger than fiction :)

i suppose the not being able to deduct the real property tax makes sense, since legally the tax liability is not the son's.
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