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TechnoratiThe Foreclosure timeline is not only vastly different from county to county; it also varies from state to state. Texas, for example, is 24 for days from the recording of the Default to the Auction, while New York is 445 days. Delays in the auction, for whatever reason, can extend these timelines into additional months.
How and Why the Data Gets Manipulated
Some foreclosure data publishers take the information from the County Recorder’s office and combine it at every stage in the foreclosure – even counting multiple stages on the same property. Yet, reporting any stage of foreclosure filed after the initial Default is simply another stage of the same filing. A notice of sale and repossession (REO) still represent the original household in default. It would, however, be appropriate to report on how many default filings go to the next stage or ultimately are repossessed by the bank. Some data providers have multiple sources of data, which results in multiple postings because the lender name is not standardized and the database recognizes the information as an additional foreclosure. Legitimate multiple foreclosures on an address are not filtered out of statistics and therefore result in inflated numbers – contributing to the aforementioned public panic. Even still, some providers do not receive either third party sale documents or cancellation of foreclosures which, if not removed, will also result in inflated numbers.
Why would a data publisher post inflated numbers? Many of these data publishers sell database subscriptions that draw customers based on the number of listings posted. It is more alluring to post 100,000 foreclosure listings, than to post 50,000. Foreclosure data sites do serve an important function – they help real estate agents, investors and the general public connect with homes that need to be sold, which is why the accuracy of the information provided is so necessary. For the most accurate data, look for a site that is single sourced, where multiple foreclosures on a single address are filtered out of statistics and third party sales and cancellations are collected and processed into data. By gaining an understanding of how the data is being published and what the numbers really represent, Americans can better assess the state of the industry and avoid unnecessary or unsubstantiated panic.
Randy Green is vice president of data acquisition for Foreclosure Trackers, Inc. Green formerly held various roles including sales and regional management with First American Real Estate, RealPro and SAFECO Title/American Title/Ticor Title before working with DataQuick as vice president of Title Services and National Data Alliance manager. He also served as director of data acquisition for RealtyTrac. He currently lives in Irvine, California. To learn more, visit www.ForeclosureTrackers.com.
