Community banks, like Amalgamated, which are said to hold the largest concentrations of commercial debt, have been apt to engage in creative restructurings to mitigate losses. Brank Banking Co., with roughly $300 million in commercial debt, has swapped credits with other banks, explained the company's executive vice chairman, Mark R. Bell.

Like Brank, Emigrant Realty Finance Inc. has also engaged in swap plays. But the company's vice chairperson, Pat Goldstein, said she is spending most of her time dealing with other banks, rather than borrowers, trying to prevent foreclosures. Emigrant Realty executed a number of A/B structures with pools of other lenders, meaning it must now contend with competing interests—some of which are eager to foreclose and others who advocate for workouts.

The complexity of these types of deals, many panelists pointed out, speaks to the considerable difference between the current downturn and the previous one during the '90s. Back then banks were also more keen on bulk loan sales, which have been scarce this time around given the success of one-off sales, observed Robert Sheridan, manger of Robert Sheridan & Partners LLC.

But Cuticelli argued that some institutions are delusional about the true depth of their distress and a loan sale here and there will only prolong the matter. "If you are unwilling to address mark to market and realize that five sales per month is not a business plan, then your institution will be taken over," he said.

For every lender that may be dragging its feet on dispositions, there are a number that are actively working to clear assets off their books—when they see fit. Michael Morris, managing director of real estate capital markets at Zions Bank, said, "We don't want to hold REO for more than 90 days." He pointed out that some banks will put more money in an REO situation if it's a class A or B asset, but his outfit is highly motivated to deal.

Loan recovery, of course, remains a crucial concern for lenders, Morris added. Borrowers, he said, are still a lenders' best bet for recouping debt, then an affiliate of the borrower, followed by a one-off sale to a third party and then a bulk sale.

Most panelists agreed that the pennies-on-the-dollar trades of the RTC days are unlikely to materialize, but there are still sound opportunities for investors. Cuticelli said lenders are generally hesitant to take back assets, which allows a savvy investor to take advantage of the market. Racebrook, for example, recently became the debtor in possession on five apartments, which it sold at a 6% cap rate.

A wave of distressed assets flooding the market is pretty much a nonstarter at this point, panelists agreed. But as defaults continue to mount, the trickle of deals that has defined the market thus far may turn into a steady stream.