RIGHT OF REDEMPTION VS.

EQUITY OF REDEMPTION
Right of Redemption is the right which is specifically granted by law to the
mortgagor. Equity of Redemption, however, is merely being recognized by
law as there is no law covering the same.
Equity of Redemption is the right of the defendant mortgagor to extinguish
and retain ownership of the property by paying the amount fixed in the
decision of the court within ninety (90) days to one hundred twenty (120)
days after entry of judgment or even after the sale but prior to its
confirmation. Right of Redemption, on the other hand, is the right granted to
the debtor-mortgagor, his successor in interest or any judicial creditor of said
debtor-mortgagor or any person having a lien in the property subsequent to
its mortgagor deed of trust under which the property is sold to redeem the
property within one (1) year from registration of the sheriffs certificate of
sale.
In other words, 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, however, 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 JUDICIAL FORECLOSURE OF MORTGAGE:
General Rule: Under Rule 68 of the Rules of Court, there is no right of
redemption in a judicial foreclosure of mortgage. There is only here an
Equity of Redemption which is exercisable within the period stipulated in the
mortgage deed and subsists after the sale and before it is confirmed by the
court. This means that after the foreclosure sale but before its confirmation,
the mortgagor may exercise his right to pay the proceeds of the sale and
prevent the confirmation of the sale.
Exception (Here, there is Right of Redemption): When the judicial foreclosure
of mortgage is in favor of a banking institution (as mortgagees), in which
case they shall be given a period of one year after the sale of the real
estate. Such period, however, has been construed to be one year from the
sate of registration of the certificate of sale in the Registry of Property.
IN EXTRAJUDICIAL FORECLOSURE OF MORTGAGE:
The Right of Redemption exists only in extrajudicial foreclosures where there
is always a right of redemption within one (1) year from the date of sale but
interpreted by the Court to mean one year from the registration of the sale.

But such one (1) year period for redemption no longer applies to juridical
persons (as mortgagors) whose real property has been mortgaged with a
bank (mortgagee). Their right to redeem the property shall be until, but not
after, the registration of the certificate of foreclosure sale with the applicable
Register of Deed which in no case shall be more than three (3) months after
foreclosure, whichever is earlier.