2006 New York Code - 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.