It sounds like Bandit could possibly have Conitive Dysfunction Syndrome. It's very simlar to alzheimers. One of the signs is disorientaion, he appears lost and doens't recognize things that are usually familiar. There are some drugs for this, but I think they are still experiemental. The best would be to talk to your neighbor and explain what you have seen. He should be kept indoors and as long as Bandits owner can deal with him being a bit of a space cadet he should be all right.