2006 New York Code - Effect Of Sale.

 
    * §  1411. Effect of sale. 1. A sale, made and conducted as prescribed
  in this article, to a purchaser, including the mortgagee or  the  person
  to  whom  or  entity to which the purchaser or the mortgagee assigns the
  terms of sale and memorandum of sale by  assignment  duly  executed  and
  recorded,  is  equivalent to a sale pursuant to judgment in an action to
  foreclose the mortgage under  article  thirteen  of  this  chapter,  and
  except  as  respects the interest of the United States of America, which
  shall be foreclosed as provided in subdivision four of this section,  or
  those   residential  tenants  whose  interest  may  not  be  foreclosed,
  terminated, modified, or impaired pursuant to this article,  immediately
  upon  the  execution  of the memorandum of sale of the person conducting
  the auction, shall bar any claim or equity of redemption, upon, or  with
  respect  to,  the  property  sold,  of  each of the following persons or
  entities:
    (a) the mortgagor, or  the  mortgagor's  heirs,  devisees,  executors,
  administrators, successors or assigns;
    (b)  each  person  claiming  under  any of them, by virtue of a title,
  lien, tenancy, interest, encumbrance, judgment or decree, subsequent  to
  the  mortgage, upon whom the notice of sale was served, as prescribed in
  this article;
    (c) each person so claiming, whose assignment,  mortgage,  conveyance,
  tenancy,  or  other interest was not duly recorded in the proper book or
  index for recording the same in the county  in  which  the  property  is
  situated,  or  whose  judgment  or  decree  was not duly docketed in the
  county clerk's office, at the time  of  the  filing  of  the  notice  of
  pendency  of  the  sale  pursuant  to  this  article,  and the executor,
  administrator, successor or assignee of such a person;
    (d)  every  other  person,  claiming  under  a   statutory   lien   or
  encumbrance,  created, recorded or filed subsequent to the filing of the
  notice of pendency, attaching to the title or interest  of  any  person,
  designated in any of the foregoing subdivisions of this section.
    2.  Nothing  in  this article shall bar or foreclose any claim upon or
  interest in the mortgaged property sold of any person  or  entity  whose
  interest  in  or  lien  upon  the  mortgaged property arose prior to the
  filing of the notice of pendency and who has not been served with a copy
  of the notice of sale in the manner prescribed in this article.
    3. A conveyance made  in  accordance  with  section  fourteen  hundred
  twelve of this article to a purchaser at the foreclosure sale, including
  the mortgagee, is not a fraudulent transfer by reason of the value given
  being  less  than the value of the mortgagor's interest in the mortgaged
  property.
    4. Where the United States of America,  or  any  of  its  agencies  or
  instrumentalities,  has  a subordinate lien or interest of record in the
  mortgaged property and is entitled to notice, the mortgagee shall obtain
  an order from the supreme court in the county in which the  sale  is  to
  take  place,  after  the time for the United States of America to appear
  has expired, foreclosing the lien or interest of the United States. Upon
  such order, the sale shall be deemed to be a judicial  sale  foreclosing
  the  lien  or  interest  of  the United States of America subject to the
  rights of the United States of America pursuant to applicable statutes.
    5. At any time within  one  year  after  the  recording  of  the  deed
  executed  and  delivered  pursuant to section fourteen hundred twelve of
  this article, but not thereafter, a court, upon such  terms  as  may  be
  just,  but  not  inconsistent with other provisions of this article, may
  set aside  the  sale  for  failure  substantially  to  comply  with  the
  requirements herein set forth as to notice, time, manner and publication
  of  such  sale  upon a finding that the failure prejudiced a substantial
  right of any person or entity described in  subdivisions  one,  two  and
  four of this section. In the event the sale has been made to a bona fide
  purchaser  other  than  the  mortgagee  or  the  mortgagee's  nominee or
  assignee without notice of any irregularity of the sale, the sale  shall
  not  be  set aside unless there shall be a restitution to such purchaser
  of the purchase price paid.
    * NB Repealed July 1, 2009