What's wrong with this picture?

http://i80.photobucket.com/albums/j1.../Image009z.jpg

This is a 50 yr old eucalyptus in our back yard in a house we just bought,
brand new construction. Soil is 18 inches higher than the neighbor's behind
the wall. Shouldn't a root ball be visible above grade? Could the roots be
in danger of rotting?

Also, isn't the block wall too close to the trunk? I wonder whether the
wall footing is resting on the tree roots.

Any opinions?