§ 1371 — Deficiency judgment

§ 1371. Deficiency judgment. 1. If a person who is liable to the\nplaintiff for the payment of the debt secured by the mortgage is made a\ndefendant in the action, and has appeared or has been personally served\nwith the summons, the final judgment may award payment by him of the\nwhole residue, or so much thereof as the court may determine to be just\nand equitable, of the debt remaining unsatisfied, after a sale of the\nmortgaged property and the application of the proceeds, pursuant to the\ndirections contained in such judgment, the amount thereof to be\ndetermined by the court as herein provided.\n 2. Simultaneously with the making of a motion for an order confirming\nthe sale, provided such motion is made within ninety days after the date\nof the consummation of the sale by the delivery of the proper deed of\nconveyance to the purchaser, the party to whom such residue shall be\nowing may make a motion in the action for leave to enter a deficiency\njudgment upon notice to the party against whom such judgment is sought\nor the attorney who shall have appeared for such party in such action.\nSuch notice shall be served personally or in such other manner as the\ncourt may direct. Upon such motion the court, whether or not the\nrespondent appears, shall determine, upon affidavit or otherwise as it\nshall direct, the fair and reasonable market value of the mortgaged\npremises as of the date such premises were bid in at auction or such\nnearest earlier date as there shall have been any market value thereof\nand shall make an order directing the entry of a deficiency judgment.\nSuch deficiency judgment shall be for an amount equal to the sum of the\namount owing by the party liable as determined by the judgment with\ninterest, plus the amount owing on all prior liens and encumbrances with\ninterest, plus costs and disbursements of the action including the\nreferee's fee and disbursements, less the market value as determined by\nthe court or the sale price of the property whichever shall be the\nhigher.\n 3. If no motion for a deficiency judgment shall be made as herein\nprescribed the proceeds of the sale regardless of amount shall be deemed\nto be in full satisfaction of the mortgage debt and no right to recover\nany deficiency in any action or proceeding shall exist.\n 4. Notwithstanding the foregoing provisions and irrespective of\nwhether a motion for a deficiency judgment shall have been made or, if\nmade, shall have been denied, the court shall direct that all moneys\nremaining in the hands of a receiver of the rents and profits appointed\nin the action, after the payment of the receiver's fees and the expenses\nof the receivership, or any moneys remaining in the hands of a mortgagee\nin possession or an assignee of the rents and profits of the premises,\nshall be paid to the plaintiff to the extent of the amount, if any, by\nwhich the judgment of foreclosure and sale exceeds the amount paid for\nthe property upon the sale.\n