"First and foremost, owners of troubled assets are seekingoperating partners, advisors and receivers who really know the realestate, and can move quickly," said Jerry Hunt, managing partner ofQuattro Realty Advisors. Panelists agreed that there are manyqualified firms, and bankers are turning to people they feel theycan trust.

And where are all the asset-sales that were predicted? "Banksdon't want to sell in bulk portfolios because of the tremendousdiscount, whereas individual note-sales attain higher values," saidCurtis Chinn, formerly of Central Pacific Bank and now SVP ofspecial assets for East West Bank, who characterized his commentsas industry-perspective and not that of a particular bank. He saidthat while sales are increasing, banks have commitments to theirown shareholders and are maximizing their position, following anFDIC road-map in October that enables more patient loanworkouts.

But the rising tide of defaulting assets may speed the process,noted Steve Duffy, managing director of Moss Adams Capital.Unwilling owners of troubled real estate can only handle so much,and will face capital-structure issues and staff-capacity issues,he said.