Vivien Desiree Labiste BSA-2A 20/20

Art 2121-2131

1. Explain the two kinds of foreclosure (10 points)

The two kinds of foreclosure are:
1. Judicial Foreclosure - is the ordinary action for foreclosure. It is
based on a personal claim against a specific property of the
mortgagor and the mortgageee is specifically given the right to claim
for deficiency.
2. Extrajudicial Foreclosure - is when a mortgagee is given a special
power of attorney to sell the mortgaged property by public auction
and a claim for deficiency is allowed.
2. Differentiate Equity of redemption from right of redemption
Equity of redemption is the right of the mortgagor to redeem the
mortgaged property after his default in the performance of the
conditions of the mortgsge but before the sale of the mortgaged
property while right of redemption is mortgagor's right to redeem
tge mortgaged property within a certain period after it was sold for
the satisfaction of the mortgaged debt.
3. Is there a legal mortgage or should mortgage be agreed by the
parties? Explain.
Yes there is a legal mortgage which the mortgage is required by law
and there is also a voluntary or conventional mortgage which is
created by agreement between the parties, the mortgagee and the
mortgagor.
4. What is the purpose/purposes of pledge?
As an accessory contract by its nature, the purpose of pledge is to
secure the fulfillment of the principal obligation.