JURISDICTION AND VENUE (determined by the assessed value of the property involved)

- Foreclosure suit is a real action so far as it is against the property, and seeks the judicial
recognition of a property debt, and an order for the sale of the res.
- When the principal obligation is not paid when due, the mortgagee has the right to foreclose the
mortgage and o have the property seized and sold with the view of applying the proceeds to the
payment of the obligation.
- Pursuant to BP. Blg. 129
o RTC exercises exclusive original jurisdiction over the action where the assessed value of
the property outside of Metro Manila exceeds P20k, if within MM, when the assessed
value exceeds P50k.
o Municipal Trial Courts + Metropolitan Trial Courts + Municipal Trial Courts in Cities +
Municipal Circuit Trial Courts exercise exclusive original jurisdiction over real actions
when the assessed value is not more than P20k or P50k when the property involved is
outside or within MM, respectively
- Failure to state the assessed value of the mortgaged real property shall be fatal to the case
since it cannot be determined which court would exercise jurisdiction over the case.
o There would be no bases for the computation of the docket fees and without payment
of correct docket fees, the court cannot acquire jurisdiction over the case and the
complaint may be dismissed.
- Venue shall be where the area of the mortgaged property or a portion thereof is situated.

Where mortgaged property covers several parcels of land located in different cities, the action may be
filed in the city where any one of the mortgaged properties may be found and the court where the
action is filed would have jurisdiction to enter a decree of foreclosure of mortgage covering the lands in
the said cities.