RealtyTrac Foreclosure Data Overstated By Twenty Percent? Major Problem!

RealtyTrac has become a "go to" source for national and international journalists. Millions of people depend on their data to be accurate and factual. Yes, that should be a redundancy but allegedly there is an integrity issue. The Atlanta Journal & Constitution decided to do a little investigation on their own and compare the numbers. They weren't even close.

According to RealtyTrac there were 11,296 properties that entered foreclosure in September but the AJC found that data included 2,200 duplicates. That is a huge data integrity problem, people. When so many sources rely so heavily on this information a gaff like that can be economically disastrous. Not only is this data tapped by you and I and the media, it is also relied upon by government agencies including the FBI, the Senate Banking Committee and even the Federal Reserve Board! 

For months I have been saying these numbers cannot possibly be correct. Now it is alleged the data at RealtyTrac is adding 20% of the properties back into the factor twice. This is a serious, serious problem. If the entire RealtyTrac database is off by 20% and the world has been relying on those figures and the economy is in the condition it is today primarily due to these figures this is a major issue. What if Wall Street fell because of a massive data integrity issue just like this?

In fact, the AJC report alledges the numbers from RealtyTrac for July show a 75% increase in foreclosures, placing Georgia number two in the nation in foreclosure ratio, when the AJC investigation put the increase at only 14%. That does not mean 14% of the houses in Georgia are in foreclosure, it means the number of properties entering foreclosure increased by 14% (remember we defined this last week in When Foreclosure Doesn't Mean Foreclosed).

The good news is that even with RealtyTrac's data being called into question the number of properties entering foreclosure in Georgia rapidly decreased over the last two months. 

STAY TUNED! This could get VERY DICEY in the next few days, weeks and months!