A: 1. Execution of contract of loan and REM agreement with the corresponding SPA. 2. Default of the mortgagor debtor either by: a. Non payment; or b. Violation of the terms of the loan or REM agreement. 3. Filing of petition for sale with clerk of court who acts as ex officio sheriff (A.M. No. 99 10 05 00). Afterwards, the clerk of court will raffle it among the sheriffs, who shall conduct the foreclosure sale once given the authority to do so. Note: Petition is filed where the property is located. In case the mortgaged properties are located in different provinces, the venue of the extrajudicial foreclosure proceedings is the place where each of the mortgaged property is located. A mortgage action prescribes in 10 years from the time the right of action accrues, that is, from the time the mortgagor defaults in the payment of his obligation to the mortgagee and not from the date of the execution of the mortgage contract. (Cando v. Spouses Olazo, G.R. No. 160741, Mar. 22, 2007) 4. Compliance with certain jurisdictional requirements: a. Publication in a newspaper of general circulation once a week for 3 consecutive weeks; and b. Posting of the notice of sale for not less than 20 days in at least 3 public/conspicuous places in the province or municipality where property is located. Note: A certificate of posting is not indispensable for the validity of an extra judicial foreclosure sale of real property. What the law requires is the posting of the notice of sale and not the certificate of posting. (DBP v. CA G.R. No. 125838 June 10, 2003) 5. Foreclosure the remedy available to the mortgagee by which he subjects the mortgaged property to the satisfaction of the obligation to secure which the mortgage was given. (59 C.J.S. 482) 6. Registration of sale with the RD This pertains to the annotation of the sale to the TCT on file with the RD. 7. Redemption The mortgagor reacquires or buys back the property, which may have passed under the mortgage. 8. Consolidation of title By filing affidavit with RD. The Affidavit of Consolidation of Title must indicate the relevant dates to show mortgagor s failure to redeem within the allowable time. This enables the mortgagee to acquire full ownership over the property. His inchoate right ripens to full ownership. 9. Cancellation of the title of the mortgagor and Issuance of a new title in favor of mortgagee The basis of which is the order of court confirming the sale. 10. Petition for a writ of possession There is no need to file an ejectment suit. Here, the mortgagee employs force to oust the mortgagor from the property. This writ may be even issued during redemption period provided the mortgagee issued a bond, but the grant of which is discretionary on the part of the court. But if the petition for the writ is filed after the expiration of the redemption period, the issuance of which is ministerial on the part of the court. This writ can be issued without the issuance of a bond; in fact it can even be issued ex parte. The writ cannot be suspended even by the filing of the mortgagor of an action to annul the foreclosure sale.
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- Fall '16
- james reyes