The apartment is filthy, the police are by on a regular basis, the hallways (common area) and completely blocked with stuff and a fire hazard, and she recently flooded the bathroom causing significant damage to the bathroom in the first floor unit. 

Check out spotcrime.com This shows police activity on a map and will give you an idea of how much and what kind of crime the neighborhood is in.Also give a call to the local police precinct and ask them about the neighborhood.  

After trying to resolve it with the bank, the police, lawyers, and the FBI, my uncle is still on the hook for $10,000 and will have to eat it to keep his own record clean.

In the BP Podcast 087, Nathan Brooks explain what was in his blog, about the house that could kill you, and he recommended that the owner leave the structure immediately, which I thought was great.However, is there a higher duty for the investor to tell the police, and/or tell code enforcement or the fire department or some authority that the house needs to be checked out because it is a major accident waiting to happen… with electrical in the SHOWER and such?

When I first joined Bigger Pockets on March 14, 2011, I had:- Negative Net Worth (Credit card debt accumulated during college) - No Real Estate Assets (let alone any assets of any sort) - Only enough cash on hand to live on (w/ a decent government job)Since then, I have:- purchased and held onto 4 good deals with 12 units, - rehabbed 8 units, - got 4 additional units under a master lease, - hosted 50 Airbnb guests, - threw a big Summit with some BP greats, - started and operate the biggest Real Estate Investment Group in San Francisco, - volunteered to help the neighborhood, and met the Mayor of Oakland in the process - helped mentor other investors and was assisted by others, - dealt with 2 tenants who didn’t complete their leases, - 1 clogged toilet I plunged myself, - 1 police visit to a property, - some water intrusion & an insurance claim, - and some tenant headaches..  

Are you the fairness police?

The FTC has also increased their ability to police and fine individuals and businesses under amendments to federal law and they have made it known they are stepping up enforcement in real estate matters.

I don't know, just speculating on what I see.I've seen some landlords asking NYC level rents for 2 bed apartments, just to recoup their money in Newburgh, and getting laughed off of Facebook.Glad I didn't throw money into that pit of despairAnd for good measure - the government is populated by commie thugshttps://midhudsonnews.com/2020/02/21/newburgh-city-councilman-at-large-goes-off-on-police-officers-during-traffic-stop-watch-body-cam-video/ 

In Denver the so called "sign police" will come by and cut your sign in half so your phone number in unreadable.

This has happened to a few crooks here and will continue to be the industry's way of policing its own.If you want to deal in mobile homes, that's great, it can be a great business when done ethically, if you don't act in good faith, ethically, honestly, legally, then you're going to be toast and good riddance. :)PS. no debate, don't need to hear excuses or justifications, or opinions to the contrary from the guilty or the greedy, that's pretty much the way it is folks.