This is a revised version of the presentation that David Phalen and I gave at the NECCIM Distressed COmmercial Real Estate breakfast on 10-15

1. Distressed Assets Commercial ForeclosuresPipeline Data | Process | Options

2. Summary About David Phalen Brecht Palombo Distressed Property Funnel US Foreclosure Pipeline Working with Lenders Summary

3. David C Phalen David 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. 3 Bartlett Hackett Feinberg P.C.

5. ABI Quarterly Asset Sales

6. ABI Quarterly Real Estate

8. $3.4MM Charles Ridge Foreclosure

10. Management

11. Disposition

12. Repositioning

13. Completion

15. Bankruptcy

16. Loss Mitigation

17. Receivership

19. Payment Unlikely

20. Notice Sent?

21. Forbearance

22. Extensions

23. Buy the Note

26. REO up 22%

27. Nonaccrual up 16.9%

29. REO up 32.8%

30. Nonaccrual up 31%

32. REO up 6.9%

33. Nonaccrual up 27.9%

35. REO up 1.1%

36. Nonaccrual up 6.8%

38. Finding Lenders FFIEC Federal Financial Institutions Examination Council FDIC Federal Deposit Insurance Corporation FRB Board of Governors of the Federal Reserve System NCUA National Credit Union Administration OCC Office of the Comptroller of the Currency OTS Office of Thrift Supervision

40. Commercial

41. Multifamily

42. ResidentialNon-Current Percentages Net Charge-Offs

43. 14 New England Banks 317 Bank Headquarters Residential = $2,734,401,000 Multifamily = $146,962,000 Construction = $848,621,000 Commercial = $1,195,547,000 Total = $4,925,531,000

44. Why Local and Regional Lenders VS Joe Banker

46. Risk or Credit Officers

47. Special Assets

48. Workout

50. Social networks