Distressed AssetsCommercial ForeclosuresPipeline Data | Process | Options

SummaryAboutDavid PhalenBrecht PalomboDistressed Property FunnelUS Foreclosure PipelineWorking with LendersSummary

David C PhalenDavid C. Phalenis a partner in the law firm of Bartlett Hackett Feinberg P.C in Boston. After serving as an Assistant District Attorney upon his admission to the bar in 1983, he has practiced primarily in the area of bankruptcy/creditor’s rights, commercial litigation and corporate/banking transactions. He has been involved in numerous commercial real estate workouts and foreclosures. Mr. Phalen received his B.A. in political science from Williams College and his J.D. cum laude from Boston College Law School, where he was an editor of the Uniform Commercial Code Reporter-Digest. Mr. Phalen represents a variety of clients in his practice, ranging from large national banks to closely-held family businesses and individuals. He is member of the Boston Bar Association, the Massachusetts Bar Association and the American Bankruptcy Institute. 3Bartlett Hackett Feinberg P.C.

Brecht PalomboBrecht has been working in real estate since 2001 and at the front end of distressed real estate since late 2005. He is a Principal at Mansard Commercial Properties. He represents Tranzon Auction Properties throughout Southern New England and he is recently the founder of distressedpro.com where members can research the distressed real estate, distressed mortgage loan balances, and notes held for sale for more than 8,000 banks nation wide.AuctioneerBroker MA, CT, NHbrecht@brechtpalombo.com781-507-9507PublicationsCREFrontline MonthlyABI Quarterly Asset SalesABI Quarterly Real Estatebostonrealestateobserver.comRecent Transactions$19.1MM Broadluxe Auctions$3.4MM Charles Ridge Foreclosure$4.25MM Columbia St Cambridge 363 Sale

CREFrontline Monthly

ABI Quarterly Asset Sales

ABI Quarterly Real Estate

bostonrealestateobserver.com

$19.1MM Broadluxe Auctions

$3.4MM Charles Ridge Foreclosure

$4.25MM Columbia St Cambridge 363 Sale

Distressed Property FunnelOREOBank OwnedManagementDispositionRepositioningCompletionBuy the propertyNonaccrualForeclosure likelyBankruptcyLoss MitigationReceivershipBuy the Note90 Days LatePre-foreclosure Payment UnlikelyNotice Sent? ForbearanceExtensionsBuy the NoteConsensual Sale

Bank Owned

Management

Disposition

Repositioning

Completion

Buy the property

Foreclosure likely

Bankruptcy

Loss Mitigation

Receivership

Buy the Note

Pre-foreclosure

Payment Unlikely

Notice Sent?

Forbearance

Extensions

Buy the Note

Consensual Sale

US Foreclosure Pipeline

Construction$85.5 Billion17% Increase Over AllREO up 22%Nonaccrual up 16.9%90 Days Late up 12.4%

17% Increase Over All

REO up 22%

Nonaccrual up 16.9%

90 Days Late up 12.4%

Commercial Real Estate$36.1 Billion30% Increase Over AllREO up 32.8%Nonaccrual up 31%90 Days Late up 15%

30% Increase Over All

REO up 32.8%

Nonaccrual up 31%

90 Days Late up 15%

Multifamily$8.3 Billion25% Increase Over AllREO up 6.9%Nonaccrual up 27.9%90 Days Late up 50%

25% Increase Over All

REO up 6.9%

Nonaccrual up 27.9%

90 Days Late up 50%

Residential$ 159.7 Billion9% Increase Over AllREO up 1.1%Nonaccrual up 6.8%90 Days Late up 13.6%

9% Increase Over All

REO up 1.1%

Nonaccrual up 6.8%

90 Days Late up 13.6%

Finding LendersLenders are generally quiet about their problems.They don’t want to be perceived as bad guysDon’t want to be appear weak or undercapitalizedWant to avoid having their dispositions characterized as distressed or fire sales

Finding LendersFFIECFederal Financial Institutions Examination CouncilFDICFederal Deposit Insurance CorporationFRBBoard of Governors of the Federal Reserve SystemNCUANational Credit Union AdministrationOCCOffice of the Comptroller of the CurrencyOTSOffice of Thrift Supervision

Lender StatsCapital AdequacyTotal NonaccrualTotal REONotes Listed as “For Sale”Nonaccrual and REOConstructionCommercialMultifamilyResidentialNon-Current PercentagesNet Charge-Offs

Construction

Commercial

Multifamily

Residential

14New England Banks317 Bank HeadquartersResidential = $2,734,401,000Multifamily = $146,962,000Construction = $848,621,000Commercial = $1,195,547,000Total = $4,925,531,000

Why Local and Regional LendersVSJoe Banker

Making ContactWho to ContactPresidentRisk or Credit OfficersSpecial AssetsWorkoutAttorneys

President

Risk or Credit Officers

Special Assets

Workout

Attorneys

Making ContactApproachPick Up the PhoneSocial networksPhysical Networking

Pick Up the Phone

Social networks

Physical Networking

18BankProspectorBETANECCIM Coupon Code40% OffA85D143AF3