New York Laws
Article 13 - Action to Foreclose a Mortgage
1371 - Deficiency Judgment.

§ 1371. Deficiency judgment. 1. If a person who is liable to the
plaintiff for the payment of the debt secured by the mortgage is made a
defendant in the action, and has appeared or has been personally served
with the summons, the final judgment may award payment by him of the
whole residue, or so much thereof as the court may determine to be just
and equitable, of the debt remaining unsatisfied, after a sale of the
mortgaged property and the application of the proceeds, pursuant to the
directions contained in such judgment, the amount thereof to be
determined by the court as herein provided.

2. Simultaneously with the making of a motion for an order confirming
the sale, provided such motion is made within ninety days after the date
of the consummation of the sale by the delivery of the proper deed of
conveyance to the purchaser, the party to whom such residue shall be
owing may make a motion in the action for leave to enter a deficiency
judgment upon notice to the party against whom such judgment is sought
or the attorney who shall have appeared for such party in such action.
Such notice shall be served personally or in such other manner as the
court may direct. Upon such motion the court, whether or not the
respondent appears, shall determine, upon affidavit or otherwise as it
shall direct, the fair and reasonable market value of the mortgaged
premises as of the date such premises were bid in at auction or such
nearest earlier date as there shall have been any market value thereof
and shall make an order directing the entry of a deficiency judgment.
Such deficiency judgment shall be for an amount equal to the sum of the
amount owing by the party liable as determined by the judgment with
interest, plus the amount owing on all prior liens and encumbrances with
interest, plus costs and disbursements of the action including the
referee's fee and disbursements, less the market value as determined by
the court or the sale price of the property whichever shall be the
higher.

3. If no motion for a deficiency judgment shall be made as herein
prescribed the proceeds of the sale regardless of amount shall be deemed
to be in full satisfaction of the mortgage debt and no right to recover
any deficiency in any action or proceeding shall exist.

4. Notwithstanding the foregoing provisions and irrespective of
whether a motion for a deficiency judgment shall have been made or, if
made, shall have been denied, the court shall direct that all moneys
remaining in the hands of a receiver of the rents and profits appointed
in the action, after the payment of the receiver's fees and the expenses
of the receivership, or any moneys remaining in the hands of a mortgagee
in possession or an assignee of the rents and profits of the premises,
shall be paid to the plaintiff to the extent of the amount, if any, by
which the judgment of foreclosure and sale exceeds the amount paid for
the property upon the sale.