28/12/2023
CTTO:
Right to redeem foreclosed property
Story by Persida Acosta
Dear PAO,
As security for my indebtedness, I executed a deed of real estate mortgage, allowing the creditors to extrajudicially foreclose my property should I fail to pay my debt. However, due to financial constraints, I was not able to pay my debt. Consequently, my property was extrajudicially foreclosed and sold at a public auction, and the pertinent Certificate of Sale was already registered on Nov. 15, 2023, as far as I know. The property was very sentimental to me, as it was given to me by my parents. Is there any way I can get hold of my property again?
Dear Sean,
The debtor-mortgagor has the right of redemption — that is, he or she has the right to buy the property from the purchaser within one year from the date of sale — as enunciated by the Supreme Court in the case of Makilito B. Mahinay v. Dura Tire & Rubber Industries, Inc. (GR 194152, June 5, 2017, Ponente: Associate Justice Marvic M.V.F. Leonen) viz:
"### Section 6 of Act No. 3135 provides:
"Section 6. In all cases in which an extrajudicial sale is made under the special power hereinbefore referred to, the debtor, his successors in interest or any judicial creditor or judgment creditor of said debtor, or any person having a lien on the property subsequent to the mortgage or deed of trust under which the property is sold, may redeem the same at any time within the term of one year from and after the date of the sale; and such redemption shall be governed by the provisions of sections four hundred and sixty-four to four hundred and sixty-six, inclusive, of the Code of Civil Procedure, in so far as these are not inconsistent with the provisions of this Act.
"The 'date of the sale' referred to in Section 6 is the date the certificate of sale is registered with the Register of Deeds. This is because the sale of registered land does not 'take effect as a conveyance, or bind the land' until it is registered.
"The right of redemption being statutory, the mortgagor may compel the purchaser to sell back the property within the one-year period under Act No. 3135. If the purchaser refuses to sell back the property, the mortgagor may tender payment to the Sheriff who conducted the foreclosure sale. ###" (Emphasis ours)
Accordingly, you may compel the purchaser/highest bidder to sell back the property within one year from Nov. 15, 2023, the supposed date when the Certificate of Sale was registered. Otherwise, if the purchaser refuses to sell it back, you may tender your payment to the sheriff who conducted the foreclosure sale.
We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated on.
Editor's note: Dear PAO is a daily column of the Public Attorney's Office. Questions for Chief Acosta may be sent to [email protected]
