A client sold a house to a buyer as a seller-financed mortgage.  However, the client still had a mortgage before selling.  So the client took out an unsecured loan from a bank in order to payoff the mortgage first.  Then, had sold it to the buyer as a seller-financed mortgage.  So, the question is..... How do you treat the interest income and can you deduct the interest on the unsecured loan as an expense?