William O. Douglas

“ The fact that men will differ in opinion as to the adequacy of any particular yardstick of value emphasizes that the appropriateness of any o e formula is peculiarly a matter for legislative determination. Certainly, so far as mortgagees are concerned, the use of the criterion of 'fair and reasonable market value' in cases where they obtain the property for a lesser amount holds promise of tempering the extremes of both inflated and depressed market prices. ”

“ Beverly, 163 U.S. 118, 16 S.Ct. 1042, 41 L.Ed. 93, the new § 1083 could not be applied to mortgage contracts previously made without violation of the contract clause of the Federal Constitution.
The formula which a legislature may adopt for determining the amount of a deficiency judgment is not fixed and invariable. That which exists at the date of the execution of the mortgage does not become so embedded in the contract between the parties that it cannot be constitutionally altered. ”

“ Hanan, 302 U.S. 375, 58 S.Ct. 273, 82 L.Ed. 312, that a requirement that the right to a deficiency judgment should be determined in the foreclosure proceeding or that a mortgagee is not entitled to a deficiency judgment unless he moves for one raises no substantial federal question. As stated by this Court in that case (302 U.S. at page 378, 58 S.Ct. at page 274, 82 L.Ed. 312) , the Federal Constitution does not prevent the states from determining, on due notice and opportunity to be heard, 'by what process legal rights may be asserted or legal obligations' enforced. ”

“ Wachovia Bank & Trust Co., 300 U.S. 124, 57 S.Ct. 338, 81 L.Ed. 552, 108 A.L.R. 886, there remained under the laws of New York no remedy available to the mortgagee which was 'substantially co-extensive' with that afforded by the old § 1083, since, though an action at law for the debt might lie, the judgment debtor's equity of redemption could not be sold under an execution upon that judgment and since the right to bring a second action to recover a deficiency resulting on a foreclosure sale, if it existed at all under the new legislation, was drastically restricted. ”

“ The control of judicial sales of realty by courts of equity and by legislatures in order to prevent sacrificial prices has a long history. Weiner, Conflicting Functions of the Upset Price, 27 Col.L.Rev. ”