The cost of the house seems low for CO. Still, we don't know what he makes, or if his wife works etc. Also, who knows what people call a project manager. Also, a lot of people want need to live in CO. I looked into going back there about 10 years ago. I would of had to take a paycut and the cost of living was more. 50 miles isn't a long comute though. We don't know what type of loan he took out. 15 yr, 20 yr, 30 yr. ARM, Fixed other. If say a 30 year fixed at 7 years he might be just beginning to aquire some equity. The big concern was they were putting housing improvements on credit cards. I've done it. Its not smart and puts you behind the 8-ball quick. Depending on what type of vehicle, loan on it etc. It might not be easy to get ride of a gas hog etc. Also, vehicle needs might be different in CO. I did live there for a few years. Storms can come up quick. Still, it does sound like prayer financing. Then the gas price increase put them over the edge.
Tom