N.Y. Real Property Actions & Proceedings Law § 1523: Judgment of foreclosure in certain cases

§ 1523. Judgment of foreclosure in certain cases. 1. In an action

under section 1503 if it shall appear to the court that there was a

defect in the original foreclosure proceedings and such defect was not

occasioned by the fraud or wilful neglect of the plaintiff, the judgment

may foreclose or reforeclose the mortgage pursuant to article 13 of this

chapter, notwithstanding that an action to foreclose the mortgage would

otherwise be barred; provided, however, that no recovery shall be

granted for any residue of the debt, remaining unsatisfied, if an action

to foreclose the mortgage would otherwise be barred.

2. If it shall appear to the court in any such action that the defect

in the foreclosure proceedings was not due to fraud or wilful neglect of

the plaintiff and that the defendant or the person under whom he claims

was not actually prejudiced thereby, the judgment may fix a time for

redemption of the property and provide that a failure to redeem within

such time shall thereafter preclude the defendant from redeeming the

property or claiming any right, title or interest therein.

3. If a redemption of the property is ordered, the court must direct

that the value of any improvement to the property made subsequent to the

original sale or conveyance in lieu of foreclosure shall be added in

computing the amount necessary to redeem the premises, in the same

manner as if the value of such improvements was a portion of the

mortgage debt.

4. If a new sale of the premises is ordered, the court may include in

the judgment a provision awarding to the plaintiff the value of any

improvements to the property made subsequent to the original sale or

conveyance in lieu of foreclosure, in the same manner as if the value of

such improvements was a portion of the mortgage debt.

5. The relief provided for in subdivision two of this section shall

not be granted unless

a. the mortgage was executed after September 1, 1951, or

b. the defendant whose right title or interest will be extinguished by

failure to redeem the property within the time fixed by the judgment

held such right to redeem only by virtue of a subordinate mortgage or

other lien, and an action to foreclose such right of redemption would

not be barred at the time this act shall take effect.

The relief provided for in subdivision four of this section shall not

be granted unless the improvements were made after September 1, 1951,

except to the extent that a recovery, allowance or credit for or on

account of the value of any improvements, including improvements made

prior to the effective date of this act, might be granted, in any other

action or proceeding, to the person maintaining the action provided for

in section 1503.