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I'm sorry but if that happened to my best friend I would tell them and if they won't be able to afford it they can crash at my house some way some how till they get back on their feet
Can your friend not keep a secret, if it's going to happen anyway, he may as well be on his feet when it does and not owing a shit load of money
Sound like a sitcom episode. FYL, OP
A true friend knows what to do
Not so subtly tell him you think it's a VERY bad idea to sign his renters contract.
Call his bank and tell them to call his work? Maybe his employer can let them know so he is no longer approved for the loan?
Tell him not to rent the apartment. Don't give a reason just tell him to trust you if you're that good of friends, or better yet, if you're best friends why are you worried about telling him to begin with? You should have faith in your friend.
Just tell him that your not supposed to tell him so he has to keep it a secret, because he is helping you so he won't rat you out if you tell him
OP, I think you already feel what you want to do. You seem like a good man to have this conflict in you. I won't tell you what to do, but just consider carefully the effects of telling vs not telling him. He trusts you. Do you trust him not to give the secret away? It's ok if he guesses, right?
Keywords
Send him a letter in the mail anonymously.
Try your hardest to talk him out of the apartment maybe offer to let him move in with you.