1.
Compare and Contrast EQUITY OF still not acquired the subsequent acquisition
REDEMPTION and the RIGHT OF
REDEMPTION, in terms of nature,
scope, period, coverage, etc. (50 points)
Equity of redemption is the right to
extinguish the mortgage and retain ownership of
the property by paying the debt. The equity of
redemption may be exercised even after the
foreclosure sale provided it is made before the
sale is confirmed by order of the court. Right of
Redemption, on the other hand, is a right granted
to a mortgagor to repurchase the property even
after the confirmation of the sale and even after
the registration of the certificate of sale.
In relation to mortgage, the right of
redemption exists in extrajudicial foreclosure,
while equity of redemption exists only in judicial
foreclosure.
In extrajudicial foreclosure, the
mortgagor may exercise his right of redemption
within 1 year from the registration of the sale in
the Office of the Registry of Deeds, while in
judicial foreclosure, the mortgagor may exercise
his equity of redemption during the period of not
less than 90 days nor more than 120 days from
entry of judgment of foreclosure or even after the
foreclosure sale but before the judicial
confirmation of the sale. There is no right of
redemption in judicial foreclosure of mortgage,
except only if the mortgagee is the Philippine
National Bank or any banking institution. Thus, in
judicial foreclosure of mortgage where the
mortgagee is the Philippine National Bank or any
banking institution, there exist both equity of
redemption and right of redemption.
2. In your own words, what is the
significance of the ruling of the Supreme
Court case of JUANITA ERMITAÑO vs
LAILANIE M. PAGLAS (G.R. No.
174436, January 23, 2013) with respect
to the rights of the parties during the
period of redemption? (25 points)
The significance of the ruling in this
case is that the mortgagor is still considered
as the owner of the foreclosed property and
the title remains to him during the period of
redemption. The ownership still remains with
the mortgagor until the after the period of
redemption has expired without the right of
redemption being exercised.
Thus, the rentals due to the
petitioner is still valid as the purchaser has
of the foreclosed property because the
petitioner’s right of redemption as a
mortgagor has not yet expired.
The purchaser only becomes an
absolute owner of the property if it is not
redeemed during the redemption period.
Pending expiration of the period of
redemption, the purchaser may petition the
Court of First Instance of the province or
place where the property or any part thereof
is situated, to give him possession thereof
during the redemption period. As a
consequence of the inchoate character of
the purchaser’s right during the redemption
period, he is still allowed to take possession
of the foreclosed property only upon the filing
of a bond.
3. When does a purchaser in a foreclosure
sale have the right to the issuance of a
Writ of Possession? Discuss the
availability of the right BEFORE and
AFTER the Redemption Period and
process to avail of such right. (25 points)
Under the law, the purchaser at the
foreclosure sale is entitled to the issuance of
a writ of possession during and after the
period of redemption, regardless of whether
or not there is a pending suit for annulment
of the mortgage or the foreclosure itself
without prejudice to the eventual outcome of
said case.
The purchaser is allowed to take
possession of the foreclosed property during
the redemption period upon filing of an ex
parte application with Regional Trial Court of
the province or place where the property or
any part of it is situated and approval of a
bond in an amount equivalent to the use of
the property for a period of 12 months to
indemnify the mortgagor in case it be shown
that the sale was made in violation of the
mortgage or without complying with the
requirements of the law.
Moreover, such writ of possession
may also be issued even after the time for
redemption has expired, without redemption
having been made especially where a new
title has already been issued in the name of
the purchaser. The purchaser in a public
auction has only to file a petition for issuance
of the writ without need of a bond.