Thursday, June 14, 2007

Oops, Our Mistake... (RealtyTrac to Cleanup Foreclosure Data)

by Osman Parvez
----


I've been tracking the foreclosure situation in Colorado using data from Realtytrac but then I discovered their numbers might be inflated by as much as 3x. After putting in all the time to build charts and track data, perhaps "disappointed" is putting it lightly.

Anyway, good news is on the horizon. The company will be fixing its reporting system. Although I know their data is still too high, If I get some time over the next few days, perhaps I'll do a foreclosure update for the sake of continuity.
RealtyTrac to Revise Formula
Newark Star-Ledger (NJ) (06/12/07); Ali, Sam
RealtyTrac, the Irvine, Calif.-based company that tracks U.S. foreclosures, has announced that it will tweak its reporting system as early as July. The firm's monthly foreclosure tally is widely cited in the media, but RealtyTrac's methodology--which sometimes results in properties being counted multiple times, thereby boosting overall numbers--has spawned criticism from the Mortgage Bankers Association and officials with Colorado's Division of Housing, among other detractors. Saying that media outlets and other followers of its monthly releases too often misinterpret the data, RealtyTrac CEO Rick Sharga said the company will continue to report new filings but also will break down the numbers in terms of unique households affected by foreclosure.
hat tip: Jeff Laws



----
Like this analysis?    Subscribe to our client research report.     
Want to get blog updates via email?  Click HERE.       
Ready to buy or sell?  Schedule an appointment or call 303.746.6896. 
You can also like our Facebook page or follow us on Twitter.

As always, your referrals are deeply appreciated.  

--
The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

2 comments:

  1. There was no mistake. RealtyTrac caved to NAR, one of the other detractors, pressure because their reporting methodology was too "scary." The new methodology will be less useful because it will not track stumbling mortgages. Those that get multiple 30 day lates.

    ReplyDelete
  2. Stumbling mortgage? Do you mean pre-foreclosures?

    The problem with RealtyTrac is double and sometimes triple counting in their stats. This helps them appear to have a large inventory of homes available for foreclosure investors, but it also massively skews the stats.

    *If* there was NAR pressure for better reporting, the association was doing the right thing. But the pressure appeared to be coming from the CO Division of Housing. See my previous posts.

    ReplyDelete