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Brian Whipps suffered critical injuries when a car ploughed into his front bedroom where he was taking a nap.
He was taken to John Hunter Hospital in Newcastle for treatment but died a short time later.
Neighbour and life-long friend John Robinson said his friend was “too young” and “too good of a bloke” to die.
“It’s horrible,” he said.
“Worst thing you’ve ever seen.”
Emergency services believe the 69-year-old male driver had a heart attack which led to him veering off High Street and into the house.
The driver remains in John Hunter Hospital in a stable condition.
Mr Whipps family told NBN News “It’s a tragic accident” and that they “don’t blame the driver”.
Witnesses or anyone with dashcam in the area is urged to contact police.