Theoretically, market watchers should be celebrating this week. After all, recent foreclosure statistics found Massachusetts homeowners appear to be on top of their finances. Filings for both foreclosure petitions and deeds were down almost 60 percent in January.

But anyone versed in the real estate should realize this dramatic decrease isn’t an indicator of an improving market. There’s a greater likelihood that the slowdown was caused by lenders delaying their processes. Last fall, banks halted foreclosures in wake of the robosigning controversy. Bank of America, among others, temporarily suspended foreclosure activity to recheck procedures and paperwork. Big lenders’ legal problems have forced them to be skittish with foreclosures.

These plunging numbers are putting out a false notion of a recovering economy. The foreclosure problem is still plaguing much of the country, and the Bay State. In fact, it’s so much of a lingering problem that neighborhood groups and town officials are taking extreme measures.

Last week, officials in Webster approved a plan to shame owners of rundown buildings into fixing and securing their properties. They’re using the scarlet letter approach – placing 4-by-8 foot signs on the sides of dilapidated buildings advertising the owner’s name, address and telephone number.

In Webster, foreclosure deeds doubled in 2010 – jumping to 68 from 34 in 2009, according to data provided by The Warren Group, publisher of Banker & Tradesman. That’s significantly higher than the statewide rate, which recorded a 32 percent rise in completed foreclosures in 2010. But Webster isn’t the hardest hit town in the area. In 2010, the town ranked ninth for foreclosure activity in Worcester County. The yearly rate in the city of Worcester hovered around 1,000 foreclosures last year.

Blighted properties become an eyesore and a costly problem in neighborhoods. Webster officials estimate spending $9,000 a year to deal with squatters, vandals and other problems. That may seem an inconsequential amount, but cash-strapped municipalities can’t spare that kind of cash.

Is shaming those who walk away from property they can’t afford the solution? The town of Webster appears to be at its wits end. While other towns haven’t taken such drastic measures, many are struggling to deal with a growing number of abandoned properties. Aside from the costs, residents worry about how foreclosures bring down home values.

It’s easy to blame the big banks for these troubles. Were lenders too lenient? How did so many homeowners get into this kind of trouble? Until recently, many didn’t discuss how joblessness tied into foreclosure rates. And it’s rare that anyone points a finger at lawmakers for contributing to these false hopes. In August, Gov. Deval Patrick signed a bill that, in part, extended the right-to-cure law from 90 days to 150 days.

But stretching out the foreclosure process to almost a year isn’t helping anyone. Instead, it’s resulting in months like January – where recorded petitions and deeds plunge, only to soar in a few months.

The decrease in foreclosures is likely to continue. Forcing lenders to wait two extra months to begin foreclosure processes is slowing down the pace, but not slowing down the actual number of foreclosures that will eventually take place. Last year’s homebuyer tax credit lured buyers into the market, allowing owners of distressed properties to get rid of their properties. With that option now mostly off the table, troubled homeowners are left with fewer options.

The federal government’s mortgage modification programs, including the much-maligned Home Affordable Modification Program (HAMP), are also slowing bank’s role in the foreclosure process. To date, only slightly more than 500,000 borrowers have received permanent loan modifications under the program. More than 800,000 of the 1.5 million borrowers who started in the program have dropped out.

A number of factors are causing continued unsteadiness in the housing market. But to shame only those who have fallen into foreclosure is just as reckless and ignorant as the lawmakers dragging out the process.