Ethical/Moral Dilemma

[ucbruin]

At the end of the day....

 

[Hondo]

No way is the bank going to refi that property in its current state. What they need is a rehab loan, I am sure they owe much more than its worth in its current condition.

Have a conversation with the daughter and cancel with the Lender.

 

[Tom D]

So no answer on if my duty of confidentiality comes in to play here?

You can call human services if they have one. Nothing confidential you're discussing, concern for the person's safety & health. I prob would talk to the daughter and ask her if see knows the conditions.

 

[Elliott]

AI says,

"It is generally considered ethical for a real estate appraiser to report suspected elder or child abuse observed during an appraisal, particularly when the condition of the home raises serious concerns. In some jurisdictions, reporting may even be encouraged or required under certain circumstances, depending on local law and professional codes of ethics.
Reporting Suspected Elder Abuse
• Appraisers who suspect elder abuse due to neglect or poor living conditions are encouraged to report it for the protection of vulnerable clients.
• The ethical codes in real estate advise vigilance for signs of elder exploitation, and reporting is seen as a way to prevent further harm, with guidance to contact local Adult Protective Services.
• While appraisers may not always be mandatory reporters for elder abuse (unlike health care or social workers), making a report in good faith is considered ethical and aligns with a duty to protect at-risk populations.
Reporting Suspected Child Abuse
• Most states in the U.S. encourage any person with reasonable cause to believe a child has suffered abuse or neglect to report their suspicions.
• Ethics standards in the appraisal profession emphasize integrity and serving the public good, and reporting suspected child abuse aligns with these values."

.................
remember AI won't hold your hand when you get sued tho.

 

[J Grant]

Do not speak with the daughter. She can report you to the lender client or otherwise make trouble for you, Make an anonymous complaint to family services, and that's all you can do

 

[Sadie]

Well, it would be readily apparent who reported it, doubtful this woman gets company on the regular. Of course I informed the lender, they will of course cancel the order and pay for the inspection. I just dont know how I am going to sleep at night if I dont do something. Her daughter should be arrested!

How do you know the daughter is capable of fixing the situation? Unless someone has been proven legally incompetent, there is not a whole lot someone can do. You reporting the living conditions may be the first step in the HO losing their autonomy, which btw, might not be a bad thing.

 

[Fernando]

So no answer on if my duty of confidentiality comes in to play here?

You could be test case for USPAP violation.

 

[Tom4value]

I read the OP twice and read all the comments. All of the comments showed compassion and were truly intended to do what is right. However, I am with Dublin Ohio on this one. Though the conditions are deplorable by most people’s standards, we have no way of knowing if the woman is being abused. I have seen “hoarder houses” before. All of them were occupied by people who otherwise seemed normal by what could be ascertained in the half hour or so I was there.

That last part is important. If I report the situation to “authorities” or do anything beyond my appraisal duties, I could open myself up to legal action from the daughter or even the woman herself. Their argument would be, “how do you make that determination from a half hour observation?” People have the right to live the way they want to live. If she is being abused, it is the responsibility of others train in these matters to step in. If I cause trouble or ruin the life of a person who just lives different than me, at best I would feel horrible. At worst, I would have legal problems. Not a hill I want to die on.

So what would I do? Just report to my client the condition of the property. They won’t lend on it, the appraisal canceled. If the daughter or woman complains, I at least can say I did my duty as an APPRAISER.

 

[sputnam]

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.

In many... maybe most... states, you are required to report to the appropropriate authority if you observed evidence of possible elder abuse. It's up to those authorites to investigate and sort it out. Not up to you. It's not a violation of USPAP. It's a jurisdictional exception. Required by law.

 

[J Grant]

AI Who are Mandated Reporters?

• Childcare and Education Professionals:
  Teachers, school officials, social workers, daycare workers, and residential or institutional workers are often mandated reporters.
  
  
• Healthcare Professionals:
  Physicians, nurses, mental health professionals, and other healthcare personnel are typically included.
  
  
• Social Services and Care Workers:
  Social workers, foster care employees, and staff in assisted living or nursing homes are often on the list.
  
  
• Law Enforcement and Legal Professionals:
  Police officers, judges, and animal control officers have a legal duty to report.
• 
  
• My comment: Appraisers are not on the list.