ACT OF 3135, AS

AMENDED BY R.A.
4118
COVERAGE
-it governs the sales made to any real-estate
mortgage.
-it governs also the manner in which the sale and
redemption shall be effected.
Remedies available to mortgagee
May forclose the mortgage
File ordinary action to collect the debt
Need for special power of attorney

SPAs must be inserted in or attached to any real

estate mortgage.

If not: then, the clerk of court as ex-officio sheriff

is precluded from acting on the application of
extrajudicial foreclosure of the property.
Authority to foreclose extrajudicially

Effected only if there is a clause that woud give

the martgagee the power to foreclose the
property.
Procedure
Where to file? Filed with the executive judge
through the clerk of court who is ex-officio sheriff.

Where to sell? Province where the property is

situated.
Exception: if the place is so stipulated
Publication requirement
Notice shall be published once a week for atleast
three consecutive week in a newspaper of general
circulation.
Need for the republication
Necessary if extrajudicial foreclosure sale is
postponed.
Personal notice to the mortgagor
GR: personal notice to the mortgagor is not
required.
Exception: unless required in the mortgage
contract.
Take note class: failure to notify the mortgagor is
not a ground to set aside a foreclosure sale.
Possession by purchaser of the foreclosed property
Remedy of the mortgagor in case
foreclosure is improper
Within 30 days after the property is given to the
purchaser, the mortgagor may file a petition that
the sale be set aside on the ground that the sale
was not made in accordance with the provisions.
redemption
Right of the mortgagor to redeem the property
within 1 year after it was sold for the satisfaction
of the mortgage debt.
Requisites for valid redemption

Must be within 1 year

Payment of purchase price plus 1% interest per
month
Written notice of redemption served on officer
who made the sale
Who may redeem
Debtor
Debtors successor-in-interest
Any judicial creditor or judgment creditor of the
debtor
Any person having a lien on the property
subsequent to the mortgage
Amount of redemption
price
Limited to the winning bid price plus twelve
percent interest per annum
Effect of pendency of action for
annulment of sale
The filing of court action to enforce redemption
has the effect of preserving the redemtioners
rights and freezing the expiration of one year
period to redeem.
Ministerial duty of the
court
The judge to whom writ of possession is filed need
not look into the validity of the mortgage or the
manner of its foreclosure.
In the issuance of a writ of possession, no
discretion is left to the trial court.
Enforcement against third parties
The purchaser shall be entitled to possesion of the
property upon the finality of the order of
confirmation or upon expiration of the period
within which to redeem.