Mortgage

Article 2124: object ng contract of mortgage:

Only the ff property may be the object of a contract of mortgage
1. Immovables
2. Alienable real rights in accordance with the law, imposed upon movables
Iyong building pwedeng i-mortgage ng solo kahit hindi kasama iyong mismong land na
tinatayuan neto.
Movables may be the object of a chattel mortgage (iba sila ng rules ni pledge)

Mortgage – real estate mortgage. Immovables (e.g. land) naman ang involved as a security for
the fulfillment of obligations.
Characteristics of mortgage:
1. Real, accessory, and subsidiary contract
2. Unilateral because it creates only an obligation on the part of the creditor who must free
the property from the encumbrance once the obligation is fulfilled.
Kinds of mortgage:
1. Voluntary – agreement between partners
2. Legal – one required by law to be executed in favor of certain persons
3. Equitable – one which, although lacks the proper formalities
Possession of property mortgaged; general rule, magstay kay mortgagor.
Ownership is kay mortgagor pa rin. Delivery is not required.
Article 2125: additional sa requisites ng 2085; dapat registered sa Resgistry of Property. Pero
kahit na hindi recorded binding pa rin sa parties involved but sa third party hindi. Iyong
registration is technically para lang maging binding against third person.
Si registration kasi nag-aact lang siya as a notice of the mortgage to others, pero hindi to
nakakaapekto sa validity ng contract ng parties.
Article 2126: a registered mortgage creates a real right (A right attached to a thing or property,
as ownership, usufruct, servitude.) Right is imposed on the property itself if nag-iba ang owner
hindi mawawala si property sa pagiging mortgage. Iyong lien (A lien refers to a legal claim
against property that can be used as collateral to repay a debt) hindi siya pd i-delete porket nag-
iba owner. Walang effect kapag nag-iba si owner ng property mortgaged.
Creates merely on encumbrance (a burden on property which provides limitations sa paggamit
ng property), once na mamortgage ang property si debtor pa rin ang owner. Hindi iyon
mawawala sa kanya. Iyong rights as an owner na sa kanya pa rin; pd niyang dispose king gusto
niya hindi na need ng consent ni mortgagee (sa pledge kasi need pa ng consent ni pledgee before
i-disposeO) The law considers void any stipulation forbidding the owner from alienating the
immovable mortgaged.
If may non-payment sa debt na naganap, ang pwedeng gawin ni mortgagee is i-foreclose/ibenta.
Applicable to kahit na iyong mortgagor is not the principal debtor (for example friend ni debtor
iyong nagmortgage ng property pa kay debtor)
Article 2127: Mortgage extends to natural accessions, improvements, growing fruits, rents and
income not yet received when the obligation becomes due, and to the amount of the indemnity
granted to the proprietor from the insurer of the property mortgaged.
Hindi lang sa property itself iyong mortgage, iyong things na connected sa kanya kasama don
Pwede naman i-exclude through stipulation
Article 2128 – Mortgage credit (right ni mortgagee over the property), pwedeng i-assign ni
mortgagee sa other person basta in compliance sa law.
Article 2129 – si mortgagor pwedeng i-transfer ang ownership but kahit sinong maging owner
hindi mawawala iyong lien, so need pa rin magbayad ni debtor kay creditor. So, if hindi
nakapagbayad si debtor ng debt, pwedeng i-foreclose ni creditor iyong land kahit na iba na ang
owner. Or pwedeng singilin ni creditor iyong new owner ng property.
Article 2130 – If may stipulation na nagsasabing bawal ibenta ni owner iyong property, void
iyon. Hindi pwedeng pigilan si owner na ibenta ang property nyia.
Article 2131 - The form, extent and consequences of a mortgage, both as to its constitution,
modification and extinguishment, and as to other matters not included in this chapter, shall be
governed by the provisions of mortgage law and of the land registration law.
Foreclosure – the remedy available to the mortgagee by which he subjects the mortgaged
property to the satisfaction of the obligation to secure which the mortgage was given.
Ibebenta then iyong proceeds i-apply sa amount due
May be effected either judicially or extrajudicially
Kinds of foreclosure sale
1. Judicial – sa court; ordinary action for foreclosure under Rule 68 of the rules of court.
Iyong court dapat iyong jurisdiction niya abot sa kung saan nakalagay si real property.
If kulang si proceed ng sale ni property mortgaged, si mortgagee ay may right to claim
for deficiency.
But if third person iyong mortgagor, hindi siya liable sa defiency, si debtor dapat ang
may responsibility sa deficiency. Unless, stipulated.
2. Extrajudicial foreclosure – hind involved si court; nasa contract na pwedeng i-foreclose
ni mortgagee iyong property kapag nagdefault si debtor
When to foreclose?
1. Principal obligation is not paid when due
 2. Debtor has violated the terms and conditions of the mortgage contract
If nagforeclose before madefault si debtor; void si foreclosure
Who can foreclose?
The mortgagee or his assigns
Redemption - transaction by which the mortgagor reacquires or buys back the property which
may have passed under the mortgage or divests the property of the lien which the mortgage may
have created.