I'll preface this by saying, this is my friends situation and I'm trying to look out for him. Because of this, I don't have a full picture of his finances but I'm afraid he's making some very high risk financial decisions.
A friend of mine has been going through a lot over the last year. He's lost his dad, had his grandmother with Alzheimer's move in with him, and has twin toddlers. He has a lot going on. He may also have some alcohol abuse/other mental health issues.
He sold his late dad's house and shortly after he and his wife started house hunting. They found a neighborhood under construction and are buying a house there. It has not been built yet. He closes on it at the end of April.
Unfortunately he lost his job a few weeks ago. The company is technically keeping him on the payroll as a 'severance' through the end of April. Coincidentally when he closes on the house. He remains optimistic that he will find a job before then but he has told the lender about the situation and they told him he needs to find a job ASAP.
Myself and several friends are trying to tell him that he should talk to a professional financial advisor and maybe see about backing out of the house and figure something else out for a year or two until he's solidly back at work and his affairs are a bit more in order.
On the surface, buying a house while unemployed just doesn't seem wise. Even if you can secure the house, how are you paying the mortgage without income?
original posted by zingzorg to r/personalfinance on Mon, 01 Apr 2024 15:58:17 GMT.