Unfortunately for mortgage companies, this is not a new trend, but one that TransUnion has been consistently finding in its surveys for the past three years. The only slight positive TransUnion could report is that the number of consumers current on credit cards, but delinquent on their mortgages had slightly declined. The number, however, is still more than 70% higher than at the start of what’s now being called the “Great Recession.”

“The percentage of consumers current on their credit card payments and delinquent on their mortgages first surpassed the percentage of consumers current on their mortgages and delinquent on credit cards in the Q1 2008,” the company said in a statement. “Although many industry analysts believed that a reversion to the conventional payment hierarchy would ensue once the recession had concluded, this has not been the case.”

Apparently, current economic and housing environment has consumers reevaluating their priorities.

I suspect Bank of America CEO Brian Moynihan might be able to answer that as he now finds himself in that situation. Moynihan is not alone, however, as the lawsuit also names the board of directors and other bank executives.

Shareholders are claiming BofA leaders failed to disclose billions (yes, with a B) of dollars in hidden debt as well improperly recorded mortgages. The lawsuit was filed in a New York state court this week and covers the bank’s actions from January 20-October 19, 2010. Among other things, shareholders experienced a major decline in the value of the bank’s stocks. Plaintiffs are contending BofA stock lost nearly 42% of its value in 2010.

Bank of America had no comment when asked about the lawsuit. Or maybe, like Charlie Sheen, they can’t get a PR firm to stick with them. Hard to know but one thing is certain, BofA has had more bad press coverage than just about any of the other mega banks.

Another accusation in the shareholder suit is that BofA did not “have adequate personnel to process the large numbers of foreclosed loans in its portfolio.” Well, gee, that shouldn’t be too hard to prove! Just ask anyone who deals with short sales or REOs!

Shareholders shouldn’t have a lot of difficulty proving these accusations. It’s pretty sad when your own shareholders want to haul you into court!

Part II – Michael Corradini

Part III – Michael introduces Panel Members and talks with Tony Constable

Part IV – Panel member Michael Shields

Part V – Panel member Faby Gonzalez

Part VI – Panel member Jim Abbott

Part VII – Short Sale Pros Broker of Record and Real Estate Attorney Spencer Lugash

Part VIII – Spencer Lugash continued..

Part IX – Jim Abbott speaks about Abbott Realty Group going exclusive with Short Sale Pros!

Part X – Guest speaker Greg Reid, Author of 3 Feet from Gold

Part XI – Greg Reid continued..

Part XII – Closing remarks – Meet the Company

Wells Fargo, one of the most conservative lenders, has acknowledged Legitimate Property Flips and has removed their seasoning restriction as of January 1st, 2010.

Banks are finally catching up with the market and opening up their guidelines to allow more investors to revitalize the economy with legitimate property flipping. The free market system and capitalism will balance supply and demand and bring the economy back into harmony much faster than any government program could ever hope to do.

Changes like this will make 2010 easier to help homeowners avoid foreclosure! That is always something worth writing about.

We applaud your judgment Wells Fargo. We hope the other 3 majors follow suit.