It's unknown unknowns.

Had he support his parents, paid for the high school of his niece and for grandma' foster home?

Hadn't his wife left him with kids, taking the home and his new home was far from being paid off?

It’s possible there are unknown circumstances, but this person sold their house and used to proceeds to travel while unemployed. They don’t seem like a great long term decision maker.

Also unknown unknowns there.

Are his parents owners? Is he going to inherit their house? Or other assets? Can he stay at his brother's place once he uses up all the money from the proceeds of house sale?

It's really hard to judge without asking lots of questions first.

In all of the cases you mentioned, selling a home to pay for travel when unemployed despite needing work are all poor long term decisions.