As you are keenly aware, Florida is one of the leading markets for distressed real estate. As such, the majority of investors are looking for "distressed" deals because of the perception of extremely discounted prices. 

Transactions in 2009 were few and far between, but we have seen a modest increase in activity thus far in 2010. This is in part because the groups that are getting deals done are typically able to come in with better terms (i.e., 15-30 days of due diligence, followed by 15-30 days to close) and have the ability to close all cash. Many of these types of deals usually take place with an owner that is being foreclosed on or a lender that already owns the property. 

 There are other groups that are choosing to purchase the non-performing note, with an eye on getting a hold of the underlying real estate. We have closed a couple of note sales thus far this year and one of them has already produced a "friendly foreclosure" with the investors taking title to the real estate. 

 While there are no hard and fast rules, it seems like these transactions are getting discounts of 40%-60% of the face value of the note depending on the property type and condition. We have had many groups contact us regarding the purchase of notes in 2010 versus 2009 and expect this to continue moving forward. 

Our business model moving forward anticipates nearly two-thirds of the transactions we will complete will be distressed in some way, shape or form. 

 Based on the conversations I have had when traveling across the country to meet with bank executives and executives from special servicers, it seems like the general consensus is that dealing with distressed properties will account for the majority of transactions for the next 3-5 years.