Foreclosure statistics assailed as inaccurate

Despite headline-grabbing figures and further forays by government officials into helping homeowners, foreclosure statistics are being widely criticized as inaccurate.

The criticism rests largely with Irvine, Calif.-based Realty Trac, one of the major suppliers of foreclosure statistics throughout the country.

Simply put, many across the country are questioning the validity of the company’s figures, saying the numbers are inflated because many of the foreclosures the company reports are halted when homeowners resolve their debt.

Inaccuracies in Colorado, for example, where Realty Trac reported more than 54,000 foreclosures in 2006, were criticized by the state’s Division of Housing, which reported the actual number of foreclosures to be less than 29,000.

The crux of the problem appears to be Realty Trac reporting homes that have gone into the process of foreclosure as actual foreclosures, when in reality, many homeowners that go into foreclosure eventually resolve their debt and avoid losing their homes.