A deficiency judgment occurs when a creditor seeks to recover additional payment because the sale of the debtor’s property was not enough to cover the entire mortgage debt. RPAPL §1371 is the NY statute governing a motion for deficiency judgment. RPAPL §1371(2) states that a deficiency judgment is limited to the difference between the total debt owed the creditor and either the foreclosure sale price or the fair market value of the property, whichever is higher. The fair market value of the property is determined by the court. The creditor can then use this judgment to go after a debtor’s other assets in order to recover the remaining debt. If a creditor fails to make a motion for a deficiency judgment within 90 days of the foreclosure sale, the proceeds from the sale will completely discharge the debtor’s debt to the creditor.