The Real Deal Miami

A double standard on strategic defaults?

January 26, 2010 10:49AM


Yesterday, Tishman Speyer and BlackRock Realty broke the news that they would turn over their massive Stuyvesant Town and Peter Cooper Village complex in New York City to creditors, in a move many are calling strategic default. CNBC asked two industry experts why strategic default is so often called immoral when homeowners do it, whereas the commercial real estate world accepts strategic default on so much larger a scale. In the video above, Shari Olefson, a real estate foreclosure lawyer with Fowler White Boggs, and Brent White, an associate law professor at the University of Arizona, debate whether the comparison between homeowners and commercial real estate corporations is a fair one.