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6 need not have the largest circulation as long as it

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6.need not have the largest circulation as long as it isof general circulation in the place where theproperty to be foreclosed is located, whetherconducted by a sheriff or a notary public.7.Need not be a daily newspaper.ØFormalities of levy not required. —The formalities ofa levy are not required before an extrajudicially foreclosedproperty can be sold at public auction.ØNotice to bidder of all bids offered at auction salenot required.ØSection 4 of Act No. 3135 provides that the sale must takeplace “between the hours of nine in the morning and four inthe afternoon.’’ A sale at public auction held within theintervening period provided by the law (i.e., at any time from9:00 a.m. until 4:00 p.m.) is valid without regard to theduration or length of time it took the questioner to conductthe proceeding.(6) Payment of cash by highest bidder. —Where the highest bidder is the mortgagee and the amountof his bid represented the total mortgage debt, it is notnecessary for him to pay cash although Section 5 of Act No.3135 requires that the creditor must bid “under the samecondition as any other bidder.” It would serve no purpose forthe sheriff to go through the ceremony of receiving themoney and paying it back to the creditor.In case of a surplus in the purchase price, themortgageemust account for the proceeds as if the price werepaid in cash, and in an action against the mortgagee torecover the surplus, the latter cannot raise the defense thatno actual cash was received.(7) Surplus proceeds from foreclosure sale. —By their very nature, surplus money arising from a sale ofreal property like land under foreclosure stands in the sameplace of the land itself with respect to liens thereon or vestedright therein. They are constructively, at least,realproperty and belong to the mortgagor or hisassigns.(a)Surplus money, in case of foreclosure sale, gainsmuchsignificancewhentherearejuniorencumbrancers on the mortgaged property. Whenthere are several liens upon the property, the
Notes on De Leon’s Credit Transaction (2010)“Dream, though your beginnings may be humble,may the end be prosperous.”“Teamwork makes the dream work.”“I can do all things through Christ who strengthens me.” Philippians 4:13“To God Be The Glory!” | Honrales, Kimberly Ann I. , (2L, 2018) – San Beda Lawsurplus money must be applied to theirdischarge in the order of their priority.Thelien of the junior mortgagee on the property, aftersatisfying any prior mortgage, is transferred to thesurplus fund.(b)Asenior mortgageewho realizes more than theamount of his debt on a foreclosure saleisregarded as atrustee for the benefit of themortgagor and junior encumbrancers.(c)A mortgagee who exercises the power of salecontainedinamortgageisconsideredacustodianof the fund and, being bound to applyit properly, is liable to the persons entitled thereto.

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San Beda Law, Kimberly Ann I

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