I helped my friend by getting Zillow's toll free number to their legal department. Her attorney contacted them and Zillow deleted it from their sales. I would guess we as agents will still have to watch for this on homes we know didn't go for sale.
Unfortunately, the processes utilized to track and channel data from one source to another may loose credibility in translation. Refinancing may create new loan documents which in turn will cause the previous loan documents to be recorded and marked as "paid and satisfied" by the lender. I can understand how a non-banker would assume the loans are new (recent solds).
I do find myself questioning the local and national media when reporting to the general public its interpretation of where the real estate market REALLY is. No wonder folks are confussed!