The number of East Bay homeowners who received a default notice, the first step in the foreclosure process, was lower in February than a year ago, but that doesn't necessarily mean the foreclosure problem is going away.

Observers point out the improved numbers shown in the monthly report due to be released today by www.realtytrac.com continue to be linked to federal government programs and state legislation designed to help homeowners avoid foreclosure. The upshot is that a true market snapshot is not emerging of local and national foreclosure activity, which includes default notices, scheduled auction sales and bank repossessions.

"Foreclosure prevention efforts out there are impacting the numbers. You have legislation in some states like California that deflates the numbers for a few months and then you see it spike back up," said Daren Blomquist, marketing and communications manager for RealtyTrac. "Foreclosures are being managed and regulated a little bit more carefully, but we have not reached a point where there is a true market basis that's driving down foreclosures."

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