Unrealistic money numbers
1. He was making 110k + bonus before he got fired.
2. He had 850k house (that looked to actually be worth about 2M) and drove Porsche.
2 is impossible to afford with 1.
Actually, he said he was making $120k plus bonuses ($110k was what he was willing to take at the job where he told off the hiring lady). Later on in the film, he said he was offered $80k, which was half what he used to make, so we can assume his bonuses were about $40k.
The house got an offer of $850k, which he said wasn't more than what they were in on it (I assume that means they probably owed a little more than $850k on the house).
The Porsche was a convertible Boxster, so it probably cost about 60K new, but might have been a few years old. My guess is it was leased, and when MAggie gave the keys to the new owner, he was probably taking over the payments (and maybe gave them a little for the sale).
My guess is that this was family that was probably teetering on the financial "edge" even his he hadn't lost his job. The house might have been bought a few years back at a lower cost, then refinanced with equity taken out as the value went up. It is not inconceivable that at the time of the house purchase, it costs less and maybe Maggie was working some shifts to help the income look better for the loan than it really was. Most of the possessions were probably bought on credit and the debt was likely starting to pile up. This would also explain the minimal (if any) savings, and why thinks collapsed so quickly for them.
People live beyond their means all the time and all it takes is one unforeseen event (a sickness, a job loss, etc.) to knock over the house of cards and it can take years to put it back together (if ever). That was the point of their story.
I agree with everything you say.. if you are an MBA have been working for 12 years, you had a lot of savings, especially with stock options. you can burn these savings on down payment and then with a 25 years mortgage you can buy that 800,000$ house. of course the market has doubled in a few years, so they could have bought the house for less than 500k$ a decade ago, people shouldn't take all the numbers so literally.
now the part that's stretching it for me was the porsche and all the furniture and other accessories in the house. I've known a guy who made about 100k$ and had a Boxster (and even that same color!), however, usually they don't spend on anything else. Small appartment, no kids, etc. I guess the point is indeed to make these guys live way above what they can afford.
None of these numbers are unrealistic to me.
I thought that at first as well. But, suppose they bought the house for $500,000,then their local market tripled over time, not unrealistic in the 2000's. When they found it was worth $750,000, they refinanced at 80%, borrowing $600,000. Maybe they paid off $400,000 on the previous mortgage and cashed out $200,000. They buy a bunch of furniture and a Porsche. Do that a few more times and they maybe supplement their income with $200,000 a year for a few years in extra cash tax free. The mortgage goes way up, but they get teaser rates and adjustable rates because they know they will refinance in a couple of years, anyway. Then the market collapses and they are upside down and can't refinance or even sell.
I don't think their financial situation was unrealistic at all.