Mortgage- collateral

If principal debtor fails to play, the guarantor or surety bind themes to pay when the
principal debtor does not pay

 Immediately in default

REM- 2 credit transactions, not a stand alone, cannot survive w/o principal contract

 It is an accessory contract that support the principal contract

 What happened to the principal contract will also happen to the accessory cataract
 When a mortgagor become liable to the C - the same way the surety becomes liable
 Event of default of the principal obligation- similar to a surety
 THERE IS NO BENEFIT OF EXCUSSION

HOWEVER, if a contract of G or S- if the nature of the collateral is personal undertaking or

If tangible property, specific property that can be touched and see

The security is an immovable or property

 THIS MAKES THE REM more acceptable and strongest form of security that can be
offered to a C
 ART 2085- ESSENTIAL REQUISITES FOR A REM CAN BE VALID
 Absence of one REM is null and void
 To secure the fulfillment of a principal obligation
 Mortgagor be the absolute owner of the thing mortgaged
 The persons constituting the mortgage have the free disposal of their
property, and in the absence thereof, that they be legally authorized for
the purpose
 MORTGAGE CAN SUPPORT UNENFORCABLE, RESCISSIBLE AS LONG AS IT IS
NOT VOID

IF REM IS EXTINGUISHED ON ITS OWN

 IF THE MORTGAGOR IS JUST A TRUSTEE OF THE PROPERTY- MORTGAGE IS

NULL AND VOID
 PRINCIPAL WILL FOLLOW THE ACCESSORY
 YOU WILL ONLY HAVE CLEAN LOAN- UNSECURED LOAN

ABSOLUTE OWNER OF THE PROPERTY- MORTGAGOR MUST BE THE REGISTERED OWNER OF THE
PROPERTY

 THE MORTGAGOR NEED NOT BE THE PRNCIPAL DEBTOR

  A PARCEL OF LAND- SISTER BORRWING MONEY FROM THE BANK- CALLED A 3RD PARTY
MORTGAGOR- OTHERWISE REM IS NULL AND VOID

3RD REQUIREMENT
 THERE SHOULD BE NO LEGAL IMPEDIMENT TO DISPOSE THE PROPERTY OR
EXECUTE ACTS OF OWNERSHIP OVER THE PROPERTY
 BEING A TRUSTEE
 THIS IS NOT AN ACT OF ADMINISTRATION BUT AN ACT OF OWNERSHIP
 CONVICTED OF A CRIM - CIVIL INTERDICTION, UNLESS THE COURT ALLOWS
YOU

IN A CONTRACT OF G OR S-
 THERE IS DEFAULT, AND BENEFIT OF EXCUSSION- G OR S CAN BE SUED
 IN REM, THE MOMENT THERE IS DEFAULT IN THE PRINCIPAL OBLIGATION
o NO NEED TO RUN AFTER THE MORTGAGOR
o RUN AFTER PROPERTY MORTGAGED- FORECLOSURE
 MAY BE JUDICIAL AND EXTRA-JUDICIAL FORECLOSURE
 FILING A COMPLAINT OF FORECLOSURE UNDER RULE 68
 COMPLAINT, ANSWER, PRE-TRIAL, TRIAL, ORDER OF EXECUTION
 EXTRAJUDICIAL FORECLOSURE- ACT NO 3135 AS AMENDED
 Mas mura and more expeditious
 However, before it can be extra-judicially foreclosed- MAKE SURE
THAT THE STIPULATION THAT IN THE EVENT OF DEFAULT IT
MAY BE ALIENATED
 EE IS ATTY IN FACT TEH EXTRA JUDICIAL PROCEEDINGS
o otherwise , judicial foreclosure lang

 THERE WILL BE DUE PROCESS REQUIREMENT- public

auction, highest bidder will win- pays for the amount of his
bid plus expenses of exposure
 If sobra- ung sukli isoli kay mortgagor
 If kulang or deficiency- the ee or creditor may run after the
debtor for the deficiency - COLLECTION SUIT +
DAMAGES

The law does not prevent you from filing against the debtor
 But you waive the REM

 Prohibition against pactum commissorium.- null and void

 Stipulation that there will be an automatic appropriation by the creditor of the
property mortgaged without a deed of foreclosure
 This is because the policy of the law is to giv the debtor or mortgagor to save his
property to foreclosure- all opportunities are given by law
  Principle of parens patriae- pinapangalagaan yung mga gipit

REM IS INDIVISIBLE
 1 BLDG WITH 3 CONDO UNITS
 NEED MA PAY ALL
 IF YOU WANT SEPARATE TREATMENT OF 3 UNITS
 JUST EXECUTE 3 SEPARATE REM

REGISTRATION OF REM
 REGISTER OF DEEDS WHERE THE PROPERTY IS LOCATED
 BY HAVING IT ANNOTATED AT THE BACK OF THE ORIGINAL TITLE
 THIS IMPT BEC THE ACT OF REGISTRATION BINDS THE WHOLE WORLD, EVEN
THOUGH THEY DON'T HAVE KNOWLEDGE
 OTHERWISE, STILL VALID AND BINDING BETWEEN THE PARTIES, C MAY
COMPEL
 NOT BINDING TO 3RD PARTIES
 WHO REGISTERED FIRST ACQUIRED PRIORITY OF RIGHT
 EXCEPT: THOSE WHO HAVE ACTUAL KNOWLEDGE OFTHE EXECUTION OF THE
REM- ALSO BINDING TO THEM
o THOSE WHO SIGNED AS WITNESSES
o MGA MARITES
o ACTUAL KNOWLEDGE IS EQUAVALENT TO REGISTRATION -PD 1529

PHYSICAL POSSESSION IS NOT REQUIRED TO BE SURRENDERED IN REM

THE ONE DELIVERED IS THE INSTRUMENT AND THE TITLE

C CANNOT STIPULATE THAT THE MORTGAGOR IS PROHIBITED FROM SELLING THE

PROPERTY- CONTRARY TO PUBLIC POLICY
 IF KINASUHAN KA NG BANK,
 POLICY OF THE LAW TO PROTECT MORTGAGOR AND GIVE HIM EVERY
OPPORTUNITY TO SAVE HIS PROPERTY\

REM CAN SECURE FUTURE OBLIGATIONS

MORTGAGEE IN GOOD FAITH-

 INNOCENT PURCHASER OF VALUE
 MORTGAGING
 OCULAR INSPECTION IS NOT REQUIRED

ANTICHRESIS- an accessory contract

 Similar to REM
 Physical possession of the immovable is surrendered to the creditor
o For the sole purpose of paying the principal obligation
o From the fruits of the immovable
 NIC FRUITS
 HE IS ALLOWED TO MONTHLY RENTALS UNTIL THE AMOUNT IS
FULLY PAID
 DEBTOR CANNOT COMPEL THE C TO SURRENDER IT BACK TO
HIM PRIOR TO THE FULFILLMENT OF THE DEBT
 HOWEVER, THE C IS DUTYBOUND TO PAY FOR THE EXPENSES OF
PRESERVATION OF THE PROPERTY
 ALL THIS EXPENSES CAN BE FROM THE FRUITS OF THE
PROPERTIES
 THE C HAS 3 OPTIONS
 SURRENDER THE SUBJ PROPERTY- MAHAL AMILYAR
 PROPERTY MAY BE FORECLOSED