Unsolicited advice

Digger made a few comments on his site about my financial situation. Just thought I'd share my response to him. It may help somone. Here is the original post from

Digger on debt

and here is my response

Wow you said a lot there. You pretty much have it right about what we are doing. Here's the whole plan.
My parents own the house we are buying. We have been living in it for 5 years. The house appraises for 389k. We are buying it for 270k. My parents are taking 100k for themselves. That is the price we are buying it from my parents for. Because we are buying the houde with 120k in equity my wife and I are getting 25k back at the close of escrow. We are using that money to pay off our credit card, my student loan, and my wifes Exploder. We will have approx. 3k left over. We were going to use that to do some needed repairs to the house. Now we are going to use that left over cash to repair the Exploder and hope that it lasts us another 2 years. Then we will probably be buying a coworkers mini van to use as a backup incase the Exploder explodes.
Now the reason we are paying all these things off with the equity in the house is because we can not afford the payments if we still have those bills. It really has nothing to do with taxes.
Now for the details of how we are buying the house. Just incase someone out there is in the same situation. We will be actully refinancing the house. My parents are refinancing the house and putting my wife and I on the deed. In a year from now we will refinance again and take my parents off the deed. Then to keep from paying a huge gift tax on the house for my wife and my parts, and on my parents part for the 100k, we will fill out a special tax form that says that the house will be coming off of my inheritance. Therefore making it taxfree. We are getting a portion of my inheritance before my parents die. This info came from a tax person in S.F. EACH parent can give EACH child a tax free inheritance of 3 mil. The house will just come off of my 3mil.
To me this seems to be the best way to do this given our financial situation. Untill the Governator decides to give state workers their first cost of living raise in over 9 years.
CH

If you can't tell I'm in no way a fan Arnold. Can't stand him. He's trying to cut my wages and give state workers 5 days off per year UNPAID! Fuck you governator!