2023 New York Laws › RPA - Real Property Actions and Proceedings › 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.