How Reliable Is The Reported Foreclosure Data?

A recent Los Angeles Times story questions the reliability of published foreclosure data that is commonly referred to by the media and relied on by government officials when attempting to establish policy. For example, strong criticism has been directed toward Realty Trac, an Irvine, California firm that has become perhaps the most widely cited authority in the field. Reportedly, Realty Trac's methodology in counting foreclosures may result in one house being tallied several times as a foreclosure.

The following excerpt reflects, in part, the frustration of some:

• "This is highly misleading, the company's critics say. A Colorado housing official recently called RealtyTrac's numbers "ridiculous and irresponsible." The Mortgage Bankers Assn. chastised Congress for depending on the company's data. RealtyTrac's competitors are becoming increasingly vocal about what they see as its overstatements but are sometimes arguing among themselves as well."No one is measuring the truth," said Mark Zandi, chief economist for Moody's Economy.com. "This is a problem when formulating policy.""

For more, see Getting a fix on foreclosure data (Some people are losing their homes in this queasy market, that's for sure. But how many? No one agrees).