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GR No. 195540

2013-03-13

GOLDENWAY MERCHANDISING CORPORATION v. EQUITABLE PCI BANK

VILLARAMA, JR., J.

Under the new law, an exception is thus made in the case of juridical persons which are allowed to exercise the right of redemption only "until, but not after, the registration of the certificate of foreclosure sale" and in no case more than three (3) months after foreclosure, whichever comes first.[16]

AM No. P-08-2418

2012-12-04

FERDINAND S. BASCOS v. RAYMUNDO A. RAMIREZ

PER CURIAM

Neither can the Court accept the reason that "he is not in a position to have the documents be submitted"[28] nor that his job "is only to docket the foreclosure as filed xxx and to collect the docket fees and sheriff's commission after the auction sale and forward the same (applications for extra-judicial foreclosure) to the Honorable Executive Judge xxx."[29] As Clerk of Court and Ex-officio Provincial Sheriff, respondent is tasked to assist in the raffle of applications for extra-judicial foreclosure;[30] presumed to know that notices of extra-judicial foreclosure shall be raffled to accredited newspapers for publication;[31] and expected to keep a record thereof.[32]

GR No. 190078

2010-03-05

SPS. NORMAN K. CERTEZA v. PHILIPPINE SAVINGS BANK

DEL CASTILLO, J.

The requirement for at least two participating bidders provided in the original version of paragraph 5 of A.M. No. 99-10-05-0 is not found in Act No. 3135. Hence, in the Resolution[26] of the Supreme Court en banc dated January 30, 2001, we made the following pronouncements: It is contended that this requirement is now found in Act No. 3135 and that it is impractical and burdensome, considering that not all auction sales are commercially attractive to prospective bidders.

GR No. 190078

2010-03-05

SPS. NORMAN K. CERTEZA v. PHILIPPINE SAVINGS BANK

DEL CASTILLO, J.

5. The name/s of the bidder/s shall be reported by the sheriff or the notary public who conducted the sale to the Clerk of Court before the issuance of the certificate of sale.[27]

GR No. 190078

2010-03-05

SPS. NORMAN K. CERTEZA v. PHILIPPINE SAVINGS BANK

DEL CASTILLO, J.

Subsequently, on August 7, 2001, we further resolved other matters relating to A.M. No. 99-10-05-0, specifically on: (1) period of redemption of properties with respect to the change introduced by Republic Act No. 8791 (The General Banking Law of 2000) to Act No. 3135; (2) ceiling on sheriff's fees; and (3) payment of filing fees prescribed in the Rules of Court in addition to sheriff's fees.[29]

GR No. 167058

2008-07-09

PHILIPPINE NATIONAL BANK v. SPS. TOMAS CABATINGAN AND AGAPITA EDULLANTES

CORONA, J.

We note that neither the previous rule (Administrative Order No. 3)[10] nor the current rules (A.M. No. 99-10-05-O, as amended, and the guidelines for its enforcement, Circular No. 7-2002)[11] governing the conduct of foreclosure proceedings provide a clear answer to the question at hand.

GR No. 163196

2008-07-04

FIRST MARBELLA CONDOMINIUM ASSOCIATION v. AUGUSTO GATMAYTAN

AUSTRIA-MARTINEZ, J.

Yet, in order to avail itself of a writ of mandamus, petitioner must establish that it has a clear right to the extrajudicial foreclosure sale of the condominium unit of respondent.[25] Under Circular No. 7-2002,[26] implementing Supreme Court Administrative Matter No. 99-10-05-0,[27] it is mandatory that a petition for extrajudicial foreclosure be supported by evidence that petitioner holds a special power or authority to foreclose, thus:Sec. 1. All applications for extra-judicial foreclosure of mortgage, whether under the direction of the Sheriff or a notary public pursuant to Art. No. 3135, as amended, and Act 1508, as amended, shall be filed with the Executive Judge, through the Clerk of Court, who is also the Ex-Officio Sheriff (A.M. No. 99-10-05-0, as amended, March 1, 2001).

GR No. 163196

2008-07-04

FIRST MARBELLA CONDOMINIUM ASSOCIATION v. AUGUSTO GATMAYTAN

AUSTRIA-MARTINEZ, J.

Such lien shall be superior to all other liens registered subsequent to the registration of said notice of assessment except real property tax liens and except that the declaration of restrictions may provide for the subordination thereof to any other liens and encumbrances, such liens may be enforced in the same manner provided for by law for the judicial or extra-judicial foreclosure of mortgage or real property. Unless otherwise provided for in the declaration of the restrictions, the management body shall have power to bid at foreclosure sale. The condominium owner shall have the right of redemption as in cases of judicial or extra-judicial foreclosure of mortgages. (Emphasis supplied.) Clearly, Section 20 merely prescribes the procedure by which petitioner's claim may be treated as a superior lien - i.e., through the annotation thereof on the title of the condominium unit.[31] While the law also grants petitioner the option to enforce said lien through either the judicial or extrajudicial foreclosure sale of the condominium unit, Section 20 does not by itself, ipso facto, authorize judicial as extra-judicial foreclosure of the condominium unit. Petitioner may avail itself of either option only in the manner provided for by the governing law and rules. As already pointed out, A.M. No. No. 99-10-05-0, as implemented under Circular No. 7-2002, requires that petitioner furnish evidence of its special authority to cause the extrajudicial foreclosure of the condominium unit.

GR No. 148753

2004-07-30

NEW SAMPAGUITA BUILDERS CONSTRUCTION v. PHILIPPINE NATIONAL BANK

PANGANIBAN, J.

In the accessory contract[137] of real mortgage,[138] in which immovable property or real rights thereto are used as security[139] for the fulfillment of the principal loan obligation,[140] the bid price may be lower than the property's fair market value.[141] In fact, the loan value itself is only 70 percent of the appraised value.[142] As correctly emphasized by the appellate court, a low bid price will make it easier[143] for the owner to effect redemption[144] by subsequently reacquiring the property or by selling the right to redeem and thus recover alleged losses. Besides, the public auction sale has been regularly and fairly conducted,[145] there has been ample authority to effect the sale,[146] and the Certificates of Title can be relied upon. No personal notice[147] is even required,[148] because an extrajudicial foreclosure is an action in rem, requiring only notice by publication and posting, in order to bind parties interested in the foreclosed property.[149]

GR No. 149715

2002-05-29

UNITED COCONUT PLANTERS BANK v. VICENTE L. YAP

MENDOZA, J.

No certificate of sale shall be issued in favor of the highest bidder until all fees provided for in the aforementioned sections and in Rule 141, Section 9(l), as amended by A.M. No. 00-2-01-SC, shall have been paid; Provided, that in no case shall the amount payable under Rule 141, Section 9(l), as amended, exceed P100,000.00; The ceiling on sheriff's fees has been held to be applicable to notarial foreclosures of real estate mortgages under Rule 141, §20(e).[5] The question raised by petitioner is whether the cap on the amount of fees collected as commission can be applied to this case.

	GR No. 195540 2013-03-13	GOLDENWAY MERCHANDISING CORPORATION v. EQUITABLE PCI BANK VILLARAMA, JR., J.
Under the new law, an exception is thus made in the case of juridical persons which are allowed to exercise the right of redemption only "until, but not after, the registration of the certificate of foreclosure sale" and in no case more than three (3) months after foreclosure, whichever comes first.[16]
	AM No. P-08-2418 2012-12-04	FERDINAND S. BASCOS v. RAYMUNDO A. RAMIREZ PER CURIAM
Neither can the Court accept the reason that "he is not in a position to have the documents be submitted"[28] nor that his job "is only to docket the foreclosure as filed xxx and to collect the docket fees and sheriff's commission after the auction sale and forward the same (applications for extra-judicial foreclosure) to the Honorable Executive Judge xxx."[29] As Clerk of Court and Ex-officio Provincial Sheriff, respondent is tasked to assist in the raffle of applications for extra-judicial foreclosure;[30] presumed to know that notices of extra-judicial foreclosure shall be raffled to accredited newspapers for publication;[31] and expected to keep a record thereof.[32]
	GR No. 190078 2010-03-05	SPS. NORMAN K. CERTEZA v. PHILIPPINE SAVINGS BANK DEL CASTILLO, J.
The requirement for at least two participating bidders provided in the original version of paragraph 5 of A.M. No. 99-10-05-0 is not found in Act No. 3135. Hence, in the Resolution[26] of the Supreme Court en banc dated January 30, 2001, we made the following pronouncements: It is contended that this requirement is now found in Act No. 3135 and that it is impractical and burdensome, considering that not all auction sales are commercially attractive to prospective bidders.
	GR No. 190078 2010-03-05	SPS. NORMAN K. CERTEZA v. PHILIPPINE SAVINGS BANK DEL CASTILLO, J.
5. The name/s of the bidder/s shall be reported by the sheriff or the notary public who conducted the sale to the Clerk of Court before the issuance of the certificate of sale.[27]
	GR No. 190078 2010-03-05	SPS. NORMAN K. CERTEZA v. PHILIPPINE SAVINGS BANK DEL CASTILLO, J.
Subsequently, on August 7, 2001, we further resolved other matters relating to A.M. No. 99-10-05-0, specifically on: (1) period of redemption of properties with respect to the change introduced by Republic Act No. 8791 (The General Banking Law of 2000) to Act No. 3135; (2) ceiling on sheriff's fees; and (3) payment of filing fees prescribed in the Rules of Court in addition to sheriff's fees.[29]
	GR No. 167058 2008-07-09	PHILIPPINE NATIONAL BANK v. SPS. TOMAS CABATINGAN AND AGAPITA EDULLANTES CORONA, J.
We note that neither the previous rule (Administrative Order No. 3)[10] nor the current rules (A.M. No. 99-10-05-O, as amended, and the guidelines for its enforcement, Circular No. 7-2002)[11] governing the conduct of foreclosure proceedings provide a clear answer to the question at hand.
	GR No. 163196 2008-07-04	FIRST MARBELLA CONDOMINIUM ASSOCIATION v. AUGUSTO GATMAYTAN AUSTRIA-MARTINEZ, J.
Yet, in order to avail itself of a writ of mandamus, petitioner must establish that it has a clear right to the extrajudicial foreclosure sale of the condominium unit of respondent.[25] Under Circular No. 7-2002,[26] implementing Supreme Court Administrative Matter No. 99-10-05-0,[27] it is mandatory that a petition for extrajudicial foreclosure be supported by evidence that petitioner holds a special power or authority to foreclose, thus:Sec. 1. All applications for extra-judicial foreclosure of mortgage, whether under the direction of the Sheriff or a notary public pursuant to Art. No. 3135, as amended, and Act 1508, as amended, shall be filed with the Executive Judge, through the Clerk of Court, who is also the Ex-Officio Sheriff (A.M. No. 99-10-05-0, as amended, March 1, 2001).
	GR No. 163196 2008-07-04	FIRST MARBELLA CONDOMINIUM ASSOCIATION v. AUGUSTO GATMAYTAN AUSTRIA-MARTINEZ, J.
Such lien shall be superior to all other liens registered subsequent to the registration of said notice of assessment except real property tax liens and except that the declaration of restrictions may provide for the subordination thereof to any other liens and encumbrances, such liens may be enforced in the same manner provided for by law for the judicial or extra-judicial foreclosure of mortgage or real property. Unless otherwise provided for in the declaration of the restrictions, the management body shall have power to bid at foreclosure sale. The condominium owner shall have the right of redemption as in cases of judicial or extra-judicial foreclosure of mortgages. (Emphasis supplied.) Clearly, Section 20 merely prescribes the procedure by which petitioner's claim may be treated as a superior lien - i.e., through the annotation thereof on the title of the condominium unit.[31] While the law also grants petitioner the option to enforce said lien through either the judicial or extrajudicial foreclosure sale of the condominium unit, Section 20 does not by itself, ipso facto, authorize judicial as extra-judicial foreclosure of the condominium unit. Petitioner may avail itself of either option only in the manner provided for by the governing law and rules. As already pointed out, A.M. No. No. 99-10-05-0, as implemented under Circular No. 7-2002, requires that petitioner furnish evidence of its special authority to cause the extrajudicial foreclosure of the condominium unit.
	GR No. 148753 2004-07-30	NEW SAMPAGUITA BUILDERS CONSTRUCTION v. PHILIPPINE NATIONAL BANK PANGANIBAN, J.
In the accessory contract[137] of real mortgage,[138] in which immovable property or real rights thereto are used as security[139] for the fulfillment of the principal loan obligation,[140] the bid price may be lower than the property's fair market value.[141] In fact, the loan value itself is only 70 percent of the appraised value.[142] As correctly emphasized by the appellate court, a low bid price will make it easier[143] for the owner to effect redemption[144] by subsequently reacquiring the property or by selling the right to redeem and thus recover alleged losses. Besides, the public auction sale has been regularly and fairly conducted,[145] there has been ample authority to effect the sale,[146] and the Certificates of Title can be relied upon. No personal notice[147] is even required,[148] because an extrajudicial foreclosure is an action in rem, requiring only notice by publication and posting, in order to bind parties interested in the foreclosed property.[149]
	GR No. 149715 2002-05-29	UNITED COCONUT PLANTERS BANK v. VICENTE L. YAP MENDOZA, J.
No certificate of sale shall be issued in favor of the highest bidder until all fees provided for in the aforementioned sections and in Rule 141, Section 9(l), as amended by A.M. No. 00-2-01-SC, shall have been paid; Provided, that in no case shall the amount payable under Rule 141, Section 9(l), as amended, exceed P100,000.00; The ceiling on sheriff's fees has been held to be applicable to notarial foreclosures of real estate mortgages under Rule 141, §20(e).[5] The question raised by petitioner is whether the cap on the amount of fees collected as commission can be applied to this case.

PROCEDURE IN EXTRA-JUDICIAL FORECLOSURE OF MORTGAGE