EXTRAJUDICIAL FORECLOSURE OF REAL ESTATE MORTGAGE

Governing law and rules: Act No. 3135 as amended by Act No. 4118, and A.M. No. 99-
10-105-0-SC, as amended.

How initiated: All applications for Extrajudicial Foreclosure of mortgage shall be filed
with the Executive Judge, through the Clerk of Court who is also the Ex-Officio Sheriff.

Who may conduct: It may either be under the direction of the sheriff or notary public.

Manner and procedure of sale: By public auction

Venue: At the province in which the property sold is situated – in the place stipulated or
in the municipal building in which the property or part thereof is situated.

Time: Between 9o’clock in the morning 4o’clock in the afternoon

Requirement of publication of notice of sale:

If the property is worth more than Php400.00, the notice shall be published once a week
for at least three consecutive weeks in a newspaper of general circulation in the
municipality or city

If the sale did not take place on the published date, republication is necessary for the
validity of the postponed auction sale.

Requirement of posting notices of sale: Notice shall be given by posting notices of the
sale for not less than 20 days in at least 3 public places of the municipality or city where
the property is situated.

Redemption period:

If a mortgagee-creditor is a banking institution and the mortgagor is a natural person, the

redemption period is 1 year from the date of registration of the Certificate of Sale.

If a mortgagee-creditor is a banking institution and the mortgagor is a juridical person,

The period of redemption is until the registration of the certificate of foreclosure sale or
within 3 months after foreclosure, whichever is earlier.

If the mortgagee-creditor is other than a banking institution, the redemption period is one
year from the date of registration of Certificate of Sale, whether the mortgagor is a
natural or juridical person.

Right to recover deficiency: Where the proceeds of the sale is insufficient to cover the
debt, the mortgagee is entitled to claim the deficiency from the debtor.

Issuance of writ of possession: It may be issued (1) within the one year redemption
period, upon the filing of a bond; or (2) after the lapse of the redemption period, without
need of a bond.