Huerta Alba Resort Inc, v. CA and Syndicated Management Grp, Inc.

General facts:
Petitioner argued that they are entitled to a Right of redemption (1 year) under the
General Banking Act even though it was extra-judicially foreclosed (which would mean
that only equity of redemption exist).

Ruling:

Petitioner is too late to invoke right of redemption as found in the General Banking Act.

In relation to mortgage, the right of redemption exists in extra-judicial foreclosure; while equity of
redemption exists only in judicial foreclosure. In extrajudicial foreclosure, the mortgagor may exercise his
right of redemption within 1 year from the registration of the sale in the Office of the Registry of Deeds;
while in judicial foreclosure, the mortgagor may exercise his equity of redemption during the period of
not less than 90 days nor more than 120 days from entry of judgment of foreclosure or even after the
foreclosure sale but before the judicial confirmation of the sale. This is simply the right of the defendant
mortgagor to extinguish the mortgage and retain ownership of the property by paying the secured debt
within the 90-day period after the judgment becomes final, in accordance with Rule 68, or even after the
foreclosure sale but prior to its confirmation. There is no right of redemption in judicial foreclosure of
mortgage, except only if the mortgagee is the Philippine National Bank or any banking institution. Thus,
in judicial foreclosure of mortgage where the mortgagee is the Philippine National Bank or any banking
institution, there exist both equity of redemption and right of redemption. (HUERTA ALBA RESORT V. CA,
GR NO. 128567, SEPTEMBER 1, 2000).

NOTES: (UNDER RIGHT OF REDEM)

UNDER (sec 47) RA 8791, JURIDICAL MORGAGORS ARE BARRED FROM THE RIGHT OF REDEMPTION OF
MORTGAGED PROPERTY SOLD PURSUANT TO AN EXTRA JUDICIAL FORECLOSURE, AFTER THE
REGISTRATION OF THE CERTIFICATION AT THE ROD. STATED OTHERWISEL RA 8791 NOW LIMITS THE
REDEMPTION PERIOD TO ONLY 3 MONTHS TO BEGIN FROM THE DATE OF FORECLOSURE SALE BUT NOT
AFTER THE REGISTRATION OF FORECLOSURE SALE.

REDEMPTION RESTORES THE PROPERTY AS IF NO SALE WAS MADE

SALE OF MORTGAGOR TO A 3RD PARTY OF THE MORTGAGED PROPERTY DURING THE PERIOD OF
REDEMPTION ONLY TRANSFER THE RIGHT TO REDEEM.

REDEMPTION PRICE

 IF BANKING INST, AMOUNT DUE ON THE MORTGAGE DEED WITH INTEREST THEREON AT AT
THE REATE SPECFIED IN THE MORTGAGE AND ALL COSTS AND EXPENSES INCURRED BY THE
BANK IN THE SALE.
 IF NOT BANKING, AMOUNT WHICH THE PURCHASER AT THE AUCTION HAD PURCHASED THE
PROPERTY WITH 1% INTEREST THEREON IN ADDITION, UP TO THE TIME OF REDEMPTION
TOGETHER WITH ANY AMOUNT OF ANY TEXES WHICH THE PURCHASER MAY HAVE PAID WITH
INTEREST AT SAME RATE.

NOTES: (UNDER EQUITY OF REDEM)

GENERAL RULE, MORTGAGOR CANNOT EXERCISE HIS RIGHT OF REDEMPTION AFTER THE SALE IS
CONFIRMED

REDEMPTION PRICE

 IF NOT BANKING, AMOUNT DUE TO MORTGAGE UPON THE MORTGAGE DEBT WITH INT AND
OTHER CHARGES

NOTES ON REDEMPTION

NECESSARY EXPENSES INCURED BY PURCHASER ARE TO BE REIMBURSED

FRUITS SHALL BELONG TO THE JUDGMENT OBLIGOR UNTIL THE EXPIRATION OF THE PERIOD OF
REDEMPTION