A friend of mine was all excited about closing on a home after a long search and many rejected offers. He lived in North Carolina which is a Due Diligence State so he had to pay the owner about $50,000 in a due diligence payment to be a competitive buy in a town where most homes go 10-30% over the asking price along with the huge upfront DD payment.
Everything was going well until about a week before he was to close on the home he was laid off his job and escorted by security from the office. (Along with many other people.) The company that offered the mortgage called his (ex) employer the day before closing and found out he was not working there anymore. Mortgage canceling, no closing and no home.
Because the due diligence payment was nonrefundable and maybe the escrow payment too, he was soon to be homeless, unemployed, and down over $50K. (His apartment was already rented to another person so he needs to find another place to live but because he is jobless, most places won’t rent to him.) Ideas on his next step?