I do not know H, but I think he is freaking out because he knows he is losing you. I think he realizes now just how lucky he was. He knows he messed up his life. He knows he can not make up for what he has done. I think the neighbor woman is just something to take his mind off his messed up life. Poor, stupid man. He can not for the life of him figure out what to do to get his life back. He is too emotional. Probably can not even keep a straight thought. Or follow through with counselor's advice.
I am glad you feel so lucky to get this opportunity to find Karen. It is so great that you are focusing on you. I am thrilled for you to enjoy your new place!