As a result of the onslaught of articles questioning RealtyTrac’s latest report, the company has offered insight into its data collection methods and its role in foreclosure data reporting. In the company’s defense, Rick Sharga, vice president of marketing, has been quoted as standing by the numbers.

RealtyTrac’s formal position regarding the Atlanta data exposé can be found in an Inman News article titled, “RealtyTrac numbers under fire in Atlanta,” published on June 23, 2009. According to the article written by Matt Carter, “RealtyTrac is standing behind the methods it uses to collect and report foreclosure-related filings, but says its reports should not be held to the same standards as statistics compiled by government agencies for the purpose of making public policy decisions.”

Interestingly enough, while the company states their data should not be used to the same standards as government agencies or for influencing public policy, the company has touted offering the data for that exact use.

In fact, a press release located directly on the RealtyTrac Web site states, “RealtyTrac’s foreclosure data has also been used by the Federal Reserve, FBI, U.S. Senate Joint Economic Committee and Banking Committee, U.S. Treasury Department, and numerous state housing and banking departments to help evaluate foreclosure trends and address policy issues related to foreclosures.”

It seems RealtyTrac has always been the first to proclaim their information is used for governmental agencies. In the very same article that initiated the latest accusatory whirlwind, a RealtyTrac spokesman, Daren Blomquist, even attested to the fact by stating that “both federal and state governments have asked RealtyTrac for its data.”

It seems that although the company knows their information is inaccurate, it still lauds the fact that the data is used by government agencies. A simple logical argument would conclude that RealtyTrac’s data should then not be used by government agencies.