2006 New York Code - Foreclosures And Judgments.

 
    §  410-l.   Foreclosures and judgments.  1.  In any foreclosure action
  the commissioner shall be made a party defendant.   He  shall  take  all
  steps  necessary  to  protect the interests of the public therein and no
  costs shall be awarded against him.  Foreclosures shall not  be  decreed
  unless  the  court  to which application is made shall be satisfied that
  the interests of the lienholder or holders cannot be adequately  assured
  except  by  the sale of the property.  In any such proceeding, the court
  shall be authorized to appoint  the  commissioner  as  receiver  of  the
  property, or to grant such other and further relief as may be reasonable
  and proper.
    2.  Notwithstanding the foregoing provisions of this section, wherever
  it shall appear that the agency shall have loaned on a mortgage which is
  a  first  lien  upon  any  such property, such agency shall have all the
  remedies available to a mortgagee under the laws of  the  state  of  New
  York,  free from any restrictions contained in this section, except that
  the  commissioner  shall  be  made  a  party  defendant  and  that   the
  commissioner  shall take all steps necessary to protect the interests of
  the public and no costs shall be awarded against him.
    3.  In the event of a judgment against an  eligible  borrower  in  any
  action  not  pertaining  to  the  collection of a mortgage indebtedness,
  there shall be no sale of any of the  real  property  of  such  eligible
  borrower  except upon sixty days' written notice to the commissioner and
  the agency.  Upon receipt of such notice the commissioner and the agency
  shall take such steps as in their judgment may be necessary  to  protect
  the rights of all parties.