Foreclosures, Data Sources

Are Foreclosure sales (REO sales) a Factor in the Market?

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:

• The percentage of sales in the past year that involved an REO property
• The number of current REO listings
• Whether or not REO properties are affecting prices of other properties

Common Issue

Inconsistency with Comparables Used in Comparison Approach

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.

Cite Data Sources for Above Information

The data sources used to provide information on the 1004MC form should be cited.