Appraising A Property Being Used For Illicit Purposes

[J Grant]

The owner volunteers to open their property up to the appraiser as part of loan process. We report if we see a roof leak to lender...is that an invasion of their privacy? If we report to lender an illicit use that can impact value or HBU or zoning ordinances, how is that an invasion of privacy.

 

[jay trotta]

Report whatever "illegal" activity to anyone you wish; just remember to keep that "warrant" handy

 

[Roborob]

Well, lets' see.... when the landlord tells you that they lease the property to someone who is paying them $XX/month and that their tenant is running an "under the table" casino...it certainly seems that any confidentiality concerns regarding the current use would be off of the table, regarding any conversations I might have with my client, the attorney.
I do not intend on making any opinion about potential use of whatever equipment may or may not be visible and whether or not it in "my opinion" it is or is not an illegal use; if I do end up taking on this assignment, I will only make observations of what I see, and report what the landlord has told me.
Let the client then decide what they want to do with what the report includes.

H/BU is an SFR period. (this is only one troubling piece of a much larger assignment)

If it were easy, anyone could be an appraiser )

 

[glenn walker]

Better just hope the local Mafia or worse yet the South American Drug Lords don't own the machines otherwise we may see one less appraiser on that lenders roster next year. Sometimes it's best just to stick to doing appraisals because most folks that operate underground casinos are not real family friendly and knowing how stupid some AMCs and lenders are they will forward the E-mail to the borrower with the appraisers name,. phone number and address. YIKES

 

[J Grant]

Also a concern is this kind of activity can be indicative of folks in need of money laundering using a refinance or straw sale of a property to turn dirty cash into "clean" money...the feds may be interested at some point in who did the appraisal to facilitate it.

My rule of thumb is if an assignment is such you have to question whether or not to do it, don't do it. Or do it and take a chance, your call.

 

[gregb]

Hide the Bingo Boards!

 

[glenn walker]

I certainly would not go back out for a re-inspection : )