The SC held, in the case of Dizon vs Gabora, That the mortgage debtor shall have the right to

redeem the lands, the possessions, use and the enjoyment of the same during the period of
redemption When a mortgaged property is extrajudicially foreclosed. In the event of
foreclosure, the debtor is divested of his full right as owner to dispose and sell the land. The
debtor can no longer sell or eliminate the land after the foreclosure sale for the reason that he
is no longer the owner thereof.

The ruling was different in the case of Medida. The court said that the rights stated can be
transferred despite the foreclosure sale provided it is within the redemption period.
Subsequently, the court rendered different ruling as far as the ownership of the property is
concerned. Even if the property was foreclosed it is declared that the ownership of the property
still vests with the debtor. It was justified by the court that it would be absurd to divest the
debtor from ownership after the foreclosure and leave the land without an owner although it
remains registered in the name of the mortgagor.

The prevailing rule is that, it is only upon the expiration of the redemption period, without the
exercise of such right, that the ownership of the property becomes consolidated in the
purchaser. The title to land sold under mortgage foreclosure remains in the mortgager or his
grantee until the expiration of redemption period and conveyance by the master deed.