Security Transactions: Real Estate Mortgage

A. General Concepts

      Art. 2085, 2087

B.  Form of Real Estate Mortgage

Art. 2125, Art. 2131

C.  Obligations Secured

       Prudential Bank v. Alviar & Alviar, G.R. No. 150197, July 28, 2005, 464 SCRA 353.

D.  Object of Real Estate Mortgage

Art. 2124, 415

      1. After Acquired Properties

People’s Bank & Trust Company & Atlantic Gulf and Pacific Co. of Manila v. Dahican Lumber Company, et al., G.R. No. L-17500, May 16, 1967, 20 SCRA 84.

      2. Effect and Extent

            Art. 2126, Art. 2127, Art. 2129

E.  Right to Alienate Real Estate Mortgage Credit

Art. 2128, Art. 1625, Art. 1627

F.  Right to Alienate Collateral

Art. 2085, Art. 2130

G. Foreclosure of Real Estate Mortgage

      1. Judicial Foreclosure

            a. Complaint for Foreclosure

                        Rules of Court, Rule 68, Sec. 1

b. Judgment on Foreclosure

Rules of Court, Rule 68, Sec. 2

Korea Exchange Bank v. Filkor Business Integrated, Inc., et al., G.R. No. 138292, April 10, 2002, 380 SCRA 381.

c. Equity of Redemption

Rules of Court, Rule 68, Sec. 2

d. Foreclosure Sale

Rules of Court, Rule 68, Sec. 3 to 5, Sec. 7, Sec. 8

Rules of Court, Rule 39, Sec. 31, Sec. 32, Sec. 34

e.  Right of Redemption

Huerta Alba Resort, Inc. v. Court of Appeals, G.R. No. 128567, September 1, 2000, 339 SCRA 534

f. Right to Surplus or Deficiency

Rules of Court, Rule 68, Sec. 4, Sec. 6

Rules of Court, Rule 86, Sec. 7

      2. Extrajudicial Foreclosure

            a.  Special Powers

                       Act No. 3135, Sec. 1

            b.  Foreclosure Sale

Act No. 3135, Sec. 2

A.M. No. 99-10-05-0, as amended

1) Requirement of Notice

Grand Farms, Inc. & Philippine Shares Corporation v. Court of Appeals, et al., G.R. No. 91779, February 7, 1991, 193 SCRA 748.

2) Conduct of Sale

Act No. 3135, Sec. 4, Sec. 5
A.M. No. 99-10-05-0

c.  Right of Redemption

Act No. 3135, Sec. 6

A.M. No. 99-10-05-0

1)  Who may Redeem

Act No. 3135, Sec. 6

Rules of Court, Rule 39, Sec. 27

Medida, et al. v.
Court of Appeals, et al., G.R. No. 98334, May 8, 1992, 208 SCRA 887

2) How to Redeem

Rules of Court, Rule 39, Sec. 28, Sec. 29, Sec. 30, Sec. 33

d.  Right to Deficiency

Rules of Court, Rule 86, Sec. 7

e.  Right to Surplus

Suico v. Philippine National Bank, G.R. No. 170215, August 28, 2007, 531 SCRA 514.

f.  Right to Possession

1) During Redemption Period

Act No. 3135, Sec. 7 to 9

2) After Consolidation of Ownership

Rules of Court, Rule 39, Sec. 33

3) When Held by a Third Party

Rules of Court, Rule 39, Sec. 33, Sec. 16

BPI Family Savings Bank, Inc. v. Golden Power Diesel Sales Center, Inc., G.R. No. 176019, January 12, 2011, 639 SCRA 405.