Granny's escrow account shocker

DEAR BENNY: I plan to take out an equity loan on our house in order for our daughter and her husband to buy a house that is in foreclosure. Her husband is asking his parents to supply the same amount of money. Besides the remote possibility that they might not be able to repay the loan, can you tell me of the legal pitfalls that might occur taxwise in a situation like this? --June

DEAR JUNE: Sounds like a good plan to help your daughter and son-in-law. Yes, one pitfall is that they may not be able to repay the loan and you (and your son-in-law's parents) could lose this investment.

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