Illusion or the real deal ?

Falling Foreclosure Rates Could be an Illusion
Research firm RealtyTrac Inc. is expected to announce lower or flat foreclosure numbers this week.While that appears to be good news, some experts are saying that the situation isn’t really improving. Instead, new state laws that require lenders to delay filing foreclosures to give home owners time to work things out are masking the problem.Critics say the new laws are only delaying the inevitable and could signal a false bottom in the housing market."It's all smoke and mirrors," says Vincent Valvo, group publisher at the Warren Group. "People are going to trumpet this and say foreclosures are going down. But three months from now it will surge right back up."Supporters of the new laws in states like California and Massachusetts say the plans lead to more dialogue and increase the likelihood things can be worked out.Source: The Wall Street Journal (08/11/08)