The process of a foreclosure sale ~

According to Rule 68 of the Rules of Court , the procedure for judicial foreclosure is as follows:
1

• The lender files a complaint in the Regional Trial Court, where the property is located,
naming the borrower and other parties with interest in the property as defendants.
• The court issues a summons and serves it to the defendants, who have 15 days to file
an answer or a motion to dismiss.
• If the defendants fail to answer or file a motion, the court may declare them in default
and render judgment in favor of the lender.
• If the defendants answer or file a motion, the court will conduct a trial and determine if
the lender is entitled to foreclose the mortgage.
• If the court finds that the lender has a valid claim, it will order the borrower to pay the
amount due within 90 to 120 days from the entry of judgment, otherwise the property
will be sold at public auction.
• If the borrower fails to pay within the period, the court will order the sale of the property
in accordance with Rule 39 of the Rules of Court, which governs sales of real estate
under execution.
• The sale will be conducted by a sheriff or an officer of the court, who will post notices of
sale, conduct bidding, issue certificates of sale, and report to the court.
• The proceeds of the sale will be applied first to the costs and expenses of the sale, then
to the amount due to the lender, and then to any junior lien holders. Any excess will be
given to the borrower.
• The sale will not affect the rights of senior lien holders, who can still enforce their claims
against the property or the borrower.
• The sale will be confirmed by an order of the court upon motion of any party. The
confirmation will divest the rights of all parties in the action and vest them in the
purchaser, subject to redemption rights as allowed by law.
• The purchaser or last redeemer can obtain possession of the property by securing a writ
of possession from the court.

Raya Notes by Atty. Surig

According to Act 3135 , as amended by Act 4118 and Presidential Decree 385, the procedure
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for extrajudicial foreclosure is as follows:

• The lender files an application for extrajudicial foreclosure with an executive judge
through a clerk of court. The application must include a copy of the mortgage contract,
proof of default, and a statement that no action or proceeding has been filed in court for
recovery of debt or enforcement of mortgage.
• The executive judge assigns an executive judge or sheriff to conduct the sale. The
executive judge or sheriff posts notices of sale in three public places in Mandaue City
and publishes them once a week for three consecutive weeks in a newspaper of general
circulation in Cebu province.
• The sale is held at a public auction at least 30 days after the last publication. The
executive judge or sheriff conducts bidding, issues certificates of sale, and reports to
the executive judge.
• The proceeds of the sale are applied first to the costs and expenses of the sale, then to
the amount due to the lender, and then to any junior lien holders. Any excess is given
to the borrower.
• The sale does not affect the rights of senior lien holders, who can still enforce their
claims against the property or the borrower.
• The sale is subject to redemption rights as allowed by law. The borrower or any junior
lien holder can redeem the property within one year from registration of the certificate
of sale by paying the purchase price plus interest and expenses.
• If there is no redemption within one year, the purchaser can consolidate ownership by
registering an affidavit of consolidation with the Register of Deeds.

Source:
(1) Procedure for Judicial Foreclosure of Real Estate Mortgage (Rule 68 ....
https://www.foreclosurephilippines.com/procedure-for-judicial-foreclosure-of-real-estate-mortgage-rule-
68-rules-of-court/
(2) House Foreclosure: What You Need to Know | AllProperties. https://www.allproperties.com.ph/house-
foreclosure-what-you-need-to-know/.
(3) Foreclosed properties in Mandaue, Cebu • 2023.
https://www.foreclosurephilippines.com/location/mandaue/.
(4) Foreclosed properties in Cebu • 2023 • ForeclosurePhilippines.com.
https://www.foreclosurephilippines.com/location/cebu/.
(5) Foreclosed properties in Cebu City, Cebu • 2023 ....
https://www.foreclosurephilippines.com/location/cebu-city/.
(6) Your Guide to Buying Foreclosed Properties | Lamudi. https://www.lamudi.com.ph/journal/guide-
buying-foreclosed-properties/.

Raya Notes by Atty. Surig

What happens if the lot doesn’t have an Original Certificate of Title?

If the lot does not have an Original Certificate of Title (OCT), it means that either the lot is not
registered under the Torrens system of land registration, or the OCT has been lost, destroyed,
or stolen.

If the lot is not registered under the Torrens system, it means that the ownership of the lot is
not guaranteed by the state and is subject to claims by other parties. The owner of the lot may
apply for land titling under the Land Registration Authority (LRA) to obtain an OCT and secure
his or her rights over the property. The process of land titling involves submitting the required
documents, paying the fees, and undergoing verification and adjudication by the LRA and the
court.

If the OCT has been lost, destroyed, or stolen, the owner of the lot may file a petition for
reissuance of lost title in court to obtain a new OCT. The process of reissuance involves filing
an affidavit of loss with the Register of Deeds (RD), publishing notices of sale in newspapers
and public places, conducting a hearing, and issuing a court order for reissuance. The
reissuance of lost title may take up to 1.5 years or more depending on the circumstances.

Without an OCT, the owner of the lot may face difficulties in selling, mortgaging, transferring,
or inheriting the property. The buyer or lender may require an OCT as proof of ownership and
security. The RD may also require an OCT as a prerequisite for registering any transaction
involving the property. Therefore, it is advisable to have an OCT for any lot in the Philippines.

Source:
(1) How to Check Land Title Online in the Philippines - FilipiKnow. https://filipiknow.net/how-to-check-land-title-
online-in-the-philippines/.
(2) Lost Certificate of Title (Reissuance to get your title back). https://abetterconsult.com/lost-certificate-of-title/.
(3) Land Titles and Land Title Registration: FAQs | Lamudi. https://www.lamudi.com.ph/journal/faqs-on-land-title-
registration/.

Raya Notes by Atty. Surig

What are the required documents for land titling?
The required documents for land titling in the Philippines may vary depending on the type of
land and the mode of application. However, some of the common documents that are
needed are:
a. A copy of the deed or instrument that conveys the ownership of the land to the
applicant, such as a deed of sale, donation, partition, or adjudication.
b. A certified copy of the latest tax declaration of the property issued by the city or
municipal assessor.
c. A certificate of no delinquency or clearance from real property tax from the city
or municipal treasurer.
d. A location plan or vicinity map of the property prepared by a licensed geodetic
engineer.
e. A technical description and survey plan of the property approved by the Land
Management Bureau (LMB) or the Department of Environment and Natural
Resources (DENR).
f. A certificate of landholding status from the Community Environment and
Natural Resources Office (CENRO) or Provincial Environment and Natural
Resources Office (PENRO) stating whether the land is alienable and
disposable or not.
g. An affidavit of publication from a newspaper of general circulation stating that
a notice of application for land titling has been published once a week for three
consecutive weeks.
h. A certificate of posting from the barangay captain stating that a notice of
application for land titling has been posted in conspicuous places for at least
30 days.
i. Proof of payment of filing fees and other charges to the Land Registration
Authority (LRA) or the Register of Deeds (RD).

These are some of the basic requirements for land titling in the Philippines. Depending on the
circumstances, additional documents may be required by the LRA, RD, or the court.

Source:
(1) Basic Requirements for Registration of Land Title in the Philippines .... https://philippine-property.net/191-
registration-land-title.html.
(2) How To Apply for Land Title in the Philippines: An Ultimate Guide. https://filipiknow.net/how-to-apply-for-land-
title-philippines/.
(3) Land Title and Land Title Registration: Everything You Need To ... - Enta. https://www.enta.ph/resources/land-
title-and-land-title-registration/.
(4) How to get a Land Title in the Philippines - A Better Consult. https://abetterconsult.com/land-title/.

Raya Notes by Atty. Surig

Processes for land titling on residential lot

The processes for land titling on residential lot in the Philippines may depend on whether the
lot is registered or unregistered under the Torrens system of land registration.

If the lot is registered, it means that it already has an existing title issued by the Register of
Deeds (RD). The owner of the lot may transfer the title to another person through a deed of
sale, donation, partition, or other modes of conveyance. The process of transferring the title
involves:
a. Executing a deed of conveyance between the parties and having it notarized
by a lawyer.
b. Paying the capital gains tax, documentary stamp tax, transfer tax, and
registration fees to the Bureau of Internal Revenue (BIR), city or municipal
treasurer, and RD respectively.
c. Obtaining a certificate authorizing registration (CAR) from the BIR and
clearance from real property tax from the city or municipal treasurer.
d. Submitting the deed of conveyance and all supporting documents to the RD
for registration.
e. Receiving a new title under the name of the transferee.

If the lot is unregistered, it means that it does not have a title issued by the RD. The owner of
the lot may apply for a land title under Republic Act No. 10023, also known as An Act
Authorizing the Issuance of Free Patents to Residential Lands. The process of applying for a
land title involves:

a. Filing an application form with the Community Environment and Natural

Resources Office (CENRO) or Provincial Environment and Natural Resources
Office (PENRO) under the Department of Environment and Natural Resources
(DENR).
b. Submitting all the required documents, such as a certified copy of tax
declaration, location plan or vicinity map, technical description and survey plan,
certificate of landholding status, affidavit of publication and posting, proof of
payment of filing fees and other charges.
c. Undergoing verification and adjudication by the CENRO or PENRO to
determine if the applicant is qualified for a free patent.
d. Receiving a free patent and an original certificate of title from the DENR and
RD respectively.

These are some of the processes for land titling on residential lot in the Philippines. Depending
on the circumstances, additional steps or documents may be required by the authorities. It is

Raya Notes by Atty. Surig

advisable to consult a lawyer or a real estate professional before applying for land titling to
ensure compliance with all the legal requirements and procedures.

Source:
(1) How To Apply for Land Title in the Philippines: An Ultimate Guide. https://filipiknow.net/how-to-apply-for-land-
title-philippines/.
(2) How to Title land in the Philippines (8 processes to get your title). https://abetterconsult.com/title-land-in-the-
philippines/.
(3) Land Titles and Land Title Registration: FAQs | Lamudi. https://www.lamudi.com.ph/journal/faqs-on-land-title-
registration/.

How can I check if a lot is registered or unregistered?

There are different ways to check if a lot is registered or unregistered in the Philippines. One
of the easiest and fastest ways is to use the online service of the Land Registration Authority
(LRA) called eSerbisyo Web Portal1. This portal allows you to request a certified true copy
(CTC) of a land title using the title number or the name of the owner. If the title is registered
and available in the LRA database, you can pay online and download the CTC in PDF format.
If the title is not registered or not available in the LRA database, you will receive a pop-up
message informing you that the title cannot be found.

Another way to check if a lot is registered or unregistered is to go to the Registry of Deeds (RD)
where the lot is located and ask for a verification or certification of the title status. You will need
to provide the tax declaration number, location plan or vicinity map, and other information about
the lot. The RD will check their records and issue a certification stating whether the lot is
registered or unregistered. You may also request a CTC of the title if it is registered.

A third way to check if a lot is registered or unregistered is to go to the Land Registration

Authority (LRA) and request for a parcel verification, title trace back, or other services that can
help you determine the history and status of the lot. You will need to submit an application form
and pay the corresponding fees. The LRA will conduct a research and issue a report or
certification based on their findings.
These are some of the ways to check if a lot is registered or unregistered in the Philippines. It
is important to verify the title status of a lot before buying, selling, transferring, or inheriting it to
avoid legal problems and disputes in the future.

Source:
(1) LRA On-line Tracking System - Land Registration Authority. https://lots.lra.gov.ph/TransactionStatus/.
(2) How to Check Land Title Online in the Philippines - FilipiKnow. https://filipiknow.net/how-to-check-land-title-
online-in-the-philippines/.
(3) Untitled Land? Here’s How to Register | Lamudi. https://www.lamudi.com.ph/journal/untitled-land-why-register/.

Raya Notes by Atty. Surig