VRO LAW

OFFICES Gloria, Oriental Mindoro 5209

February 28, 2017

The Manager
Rural Bank of Pola
Pinamalayan Branch
Pinamalayan, Oriental Mindoro

Dear Sir/Madam,

Greetings! I write on behalf of my client Leonila Manahan.

I write to formally apply for the redemption of the foreclosed

property of my client covered by OCT 11678 acquired thru a Free
Patent. The said property was extra-judicially foreclosed on February 9,
2015 and entered on the records of Registry of Deeds on April 12, 2015.

Prior to this letter, my client has orally requested for the

redemption of her property. In support of her application, We
respectfully request for the details and Breakdown of fees on various
charges. As per her last oral communication, she was advised by your
representative that she will need to pay more or less One Hundred
Twenty Five Thousand Pesos (PHP125,000.00) on account of the
expiration of redemption period and penalties. However, she was not
given any details as to how the penalties and additional fees came
about. An examination of her Disclosure Statement on Loan/Credit
Transaction form did not do justice to the amount arrived at by your
officer.

My client would like to respectfully plead for a reduction of the

penalties and other fees in the redemption fees, considering that her
original loan amounted to more or less Thirty Thousand Pesos
(P30,000.00) and the property was foreclosed in the amount of more or
less Seventy One Thousand Pesos (P71,000.00).

In support of my clients request, The Redemption period as not

yet expired, we humbly submit that the R.A. No. 720, as amended,
provides that in cases of Land acquired thru homestead or free patent,
mortgaged to a rural bank, was foreclosed thru extrajudicial foreclosure
proceeding, the mortgagor may redeem the property within two (2)
 VRO LAW
OFFICES Gloria, Oriental Mindoro 5209
years from the date the registration of the sheriff's certificate of sale with
the Registry of Deeds.

The foreclosure sale was entered on the Registry of Deeds on April

15, 2015 hence, Mrs. Leonila Manahan or her heirs has until April 14,
2017 to redeem her property.

Furthermore, we humbly submit, that the right to repurchase in

foreclosure sales of lands covered by a Homestead or Free Patent are
provided for in Sec 119 of Public Land Act. (CA 141)

Section 119 of the Public Land Act (C.A. No. 141) provides:

Sec. 119. Every conveyance of land acquired under the free patent or
homestead provisions, when proper, shall be subject to repurchase by the
applicant, his widow, or legal heirs, within a period of five years from the
date of the conveyance.

The 5-year period under Public Land Act prevails over statutes
providing shorter period of redemption.

Jurisprudence says that the right to repurchase under

Section 119 cannot be waived by the party entitled thereto, and
applies with equal force to both voluntary and involuntary
conveyances. The Court has declared that such right to repurchase
is available in foreclosure sales of lands covered by a homestead or
free patent. Hence, the five-year period to repurchase under
Section 119 prevails over statutes which provide for a shorter
period of redemption in extrajudicial foreclosure sales. [see Rural
Bank of Davao vs Court of Appeals, G.R. No. 83992, January 27,
1993; see also Cassion vs. Banco Nacional Filipino, G.R. No. L-
3540, July 30, 1951]

The rules on redemption in the case of an extrajudicial foreclosure

of land acquired under free patent or homestead statutes may be
summarized as follows:

(a) If the land is mortgaged to a rural bank under R.A. No.

720, as amended, the mortgagor may redeem the property within
two (2) years from the date of foreclosure or from the registration
of the sheriff's certificate of sale at such foreclosure if the property
is not covered or is covered, respectively, by a Torrens title.
 VRO LAW
OFFICES Gloria, Oriental Mindoro 5209

If the mortgagor fails to exercise such right to redeem, he or

his heirs may still repurchase the property within five (5) years
from the expiration of the two (2) year redemption period
pursuant to Section 119 of the Public Land Act (C.A. No. 141).

If he fails to do so, he or his heirs may repurchase the

property within five (5) years from the expiration of the
redemption period also pursuant to Section 119 of the Public Land
Act. [see Rural Bank of Davao vs Court of Appeals, G.R. No.
83992 January 27, 1993]

Considering that her right of redemption has not yet expired. We

humbly submit for your consideration, her request to reduce the
penalties and fees added to her application for redemption and the
issuance of a clear computation with breakdown of the charges,
penalties and fees in accordance with the Disclosure Statement on her
loan.

My client has no intent to complicate things, other than to redeem

her property with a clear understanding of what she is about to pay
with her hard earned money. She is more than willing to pay the Just
and Equitable fees required under the circumstances.

Thank you. We are hoping for your consideration.

Respectfully Yours,

Atty. Vic Ruskin M. Ong

Conforme:

Leonila Manahan