The presence of a high percentage of foreclosures and/or REO sales in the neighborhood should be discussed. Common comments included in this section include:
If the 1004MC form indicates that REO sales are not a factor in the market, then a reader would not expect to see REO sales used in the comparison approach.
If REO properties are used in the comparison approach, then this section of the 1004MC should provide adequate commentary about the role REO properties play in the overall market.
The data sources used to provide information on the 1004MC form should be cited.