Ethical/Moral Dilemma

[Doug Bennett]

Got an order for a refi. Elderly homeowner not answering repeated calls. Lender said to call the daughter as the mother wont answer the phone if she doesnt recognize the number. Ok, whatever. Set up the appointment.
Just left there. The house is in such bad repair, leaking roof, sagging ceilings, cat **** smell everywhere, missing flooring, doorways blocked with furniture, broken windows/ripped screens. The roof is covered with moss, peeling wallpaper, kitchen and baths original to the home 1930's build. Clearly, that home is unsafe! My question to you, what would you do? Just report to the lender and forget about that woman? I would really like to report this to the elder abuse hotline, but I dont think i can due to my confidentiality required by USPAP. HELP bring me some clarity.

Hey my friend . . . yes, quite a dilemma. I think it's important to recognize you have two "problems" here - one professional, and one personal. I would suggest not conflating or confusing the two into one. Do what you need to do as a professional Certified Residential Appraiser for your Report/Valuation totally apart from ANY emotional embellishment. Then, call any Social Services Office in your state or county and start to chase down who you need to speak to to get this lady some help. When your gut tells you you've found the right organization, I would recommend giving them all the information they might need to take over, then step back. Realize that you MAY be crossing a line b/w personal and professional realms as the reason you know about this lady is because of your professional contacts that sent you there. However, if you chose to pursue the more "personal/emotional" aspects of the situation, at some point you may be setting yourself up for a very complicated lawsuit by other parties who may try to abuse your E&O insurance which may ultimately jeopardize your license and financial well-being as well as that of your family. Hope that's note too complicated an answer, but as Appraisers that's how we think, right . . . the old "paralysis by analysis"!! Wishing you all the best. Bless your heart for your sincere concern for this lady and her circumstance.

 

[Vermonter]

If I honestly believed this person was vulnerable or being abused, I would cancel the assignment and report it immediately.

At best you saved this person, at worst (and highly unlikely) you get reported to the state. Even if you did, you lay out the facts and maybe have to take continuing ed on confidentiality. I highly doubt a state board would want to take a position on confidentiality of a cancelled assignment versus the welfare of endangered people.

 

[Mark K]

Personally (for me) I would contact the local sheriff/cops and ask them to perform a welfare check on the old lady. Let them take it from there.

Cops do welfare checks all the time; part of the 'serve and protect' mantra. If they decide the situation warrants further investigation, they'll know who to contact.

I don't believe for a minute that USPAP speaks to this situation and I'd rather sleep better at night knowing that it was reported to someone above my pay grade.

 

[Tom4value]

If I honestly believed this person was vulnerable or being abused, I would cancel the assignment and report it immediately.

At best you saved this person, at worst (and highly unlikely) you get reported to the state. Even if you did, you lay out the facts and maybe have to take continuing ed on confidentiality. I highly doubt a state board would want to take a position on confidentiality of a cancelled assignment versus the welfare of endangered people.

What if the person is not being abused and is just a slob? The potential legal ramifications....I wouldn't want.

 

[Vermonter]

What if the person is not being abused and is just a slob? The potential legal ramifications....I wouldn't want.

One would hope an appraiser that walks into different homes all the time would know the difference between slob and actually endangered....but what legal ramifications are you worried about?

 

[Fernando]

One would hope an appraiser that walks into different homes all the time would know the difference between slob and actually endangered....but what legal ramifications are you worried about?

Appraiser has to make the right decision what to do.
If appraiser has OCD regarding cleanliness, that's a different story.

 

[Tom4value]

One would hope an appraiser that walks into different homes all the time would know the difference between slob and actually endangered....but what legal ramifications are you worried about?

 

[Tom4value]

One would hope an appraiser that walks into different homes all the time would know the difference between slob and actually endangered....but what legal ramifications are you worried about?

I addressed this already. I have been in more of these homes than I wish to admit. I cannot determine from 20 minutes whether or not a person is being abused or is just a slob.

By canceling the inspection and appraisal, I am making a judgement call on the borrower, not the property. I can only report to my client, the lender, the condition of the property. It is up to the lender if they will cancel the loan, not me. If the homeowner is of sound mind and not being abused, they could sue me for discrimination. Any 1st time lawyer would take their case and no good lawyer would take mine.

 

[J Grant]

I addressed this already. I have been in more of these homes than I wish to admit. I cannot determine from 20 minutes whether or not a person is being abused or is just a slob.

By canceling the inspection and appraisal, I am making a judgement call on the borrower, not the property. I can only report to my client, the lender, the condition of the property. It is up to the lender if they will cancel the loan, not me. If the homeowner is of sound mind and not being abused, they could sue me for discrimination. Any 1st time lawyer would take their case and no good lawyer would take mine.

Or her daughter could sue.

 

[Vermonter]

I addressed this already. I have been in more of these homes than I wish to admit. I cannot determine from 20 minutes whether or not a person is being abused or is just a slob.

Signs of abuse are different from mess. Even so if the conditions are bad enough, a wellness check is the RIGHT thing to do as a professional. Abuse or not.

By canceling the inspection and appraisal, I am making a judgement call on the borrower, not the property. I can only report to my client, the lender, the condition of the property. It is up to the lender if they will cancel the loan, not me. If the homeowner is of sound mind and not being abused, they could sue me for discrimination. Any 1st time lawyer would take their case and no good lawyer would take mine.

No, by cancelling the order you are making a decision as a professional. What if you got to the property and realized you were related to the borrower and had a conflict? Would you let your client decide on that too?

You can just as easily be sued for discrimination for conveying the condition of the property to the client and them cancelling as you could for making your own decision and calling for help. Liability comes with the job.