RIGHT OF REDEMPTION

> The debtor, his successors-in-interest, or any judicial creditor or judgment creditor of said
debtor, or any person having a lien on the property subsequent to the mortgage
or deed of trust under which the property is sold, may
redeem the same at any time WITHIN THE TERM OF 1 YEAR FROM AND AFTER THE DATE
OF THE SALE and such will be governed by the Rules of Court>
When the property is redeemed after the purchaser has been given possession, the
redeemer is entitled to deduct from the price of redemption any rentals that said purchaser
may have collected in case the property or any part thereof was rented. If the property was used
as his own dwelling, it being town property, or used it gainfully, it
being rural property, the redeemer may deduct from theprice the interest of 1% per month
provided in the Rules of Court. RULES OF COURT, RULE 39, SECTIONS 29 TO 31, AND
35Sec. 29. Effect of redemption by judgment obligor, and a
certificate to be delivered and recorded thereupon; to whom payments on redemption
made. If the judgment obligor redeems, he must make the same
payments as are required to effect a redemption by a redemptioner, whereupon, no
further redemption shall be allowed
and he is restored to his estate. The person to whom theredemption payment is made
must execute and deliver to him a
certificate of redemption acknowledged before a notary public or other officer authorized
to take acknowledgments of conveyances of real property. Such certificate must be filed and
recorded in the registry of deeds of the place in which the property is situated, and the registrar
of deeds must note the record thereof on the margin of the record of the certificate of sale. The
payments mentioned in this and the last preceding sections may be made to the purchaser r
redemptioner, or for him to the officer who made the sale. Sec. 30. Proof required of
redemptioner.A redemptioner must produce to the officer, or person from whom he seeks to
redeem, and serve with his notice to the officer a copy of the judgment or final order under which
he claims the right to redeem, certified by the clerk of the court wherein the judgment or final
order is entered; or, if he redeems upon a mortgage or other
lien, a memorandum of the record thereof, certified by the
registrar of deeds; or an original or certified copy of any
assignment necessary to establish his claim; and an affidavitexecuted by him or his age
nt, showing the amount then actually due on the
lien. Sec. 31. Manner of using premises pending redemption; waste restrained.Until the
expiration of the time allowed for redemption, the court
may, as in other proper cases, restrain the commission of waste on the property by
injunction, on the application of the purchaser or the judgment obligee, with or without notice;
but it is not waste for a person in possession of the property at the time of the sale, or entitled
to possession afterwards, during the period allowed for redemption, to continue to use it in the
same manner in which it was previously used; or to use it in the ordinary course of
husbandry; or to make the necessary repairs to buildings thereon while he occupies the
property.Sec. 35. Right to contribution or
reimbursement.When property liable to an execution against several persons is sold
thereon, and more than a due proportion of the judgment is satisfied out of the proceeds of the
sale of the property of one of them, or one of them pays, without a sale, more than his
proportion, he may compel a contribution from the others; and when a judgment is upon an
obligation of one of them, as security for another, and the surety pays the amount, or any part
thereof, either by sale of his property or before sale, he may compel repayment from the
principal.GENERAL BANKING LAW OF 2000, SECTION 47Sec. 47. Foreclosure of Real
Estate Mortgage. - In the event of foreclosure, whether judicially or extra-judicially, of any
mortgage on real estate which is security for any loan or other
credit accommodation granted, the mortgagor or debtor whose
real property has been sold for the full or partial payment of his obligation shall have the
right within one year after the sale of the
real estate, to redeem the property by paying the amount due under the mortgage deed,
with interest thereon at rate specified in the mortgage, and all the costs and expenses incurred
by the bank or institution from the sale and custody of said property less the income derived
therefrom. However, the purchaser at the auction
sale concerned whether in a judicial or extra-judicial foreclosure
shall have the right to enter upon and take possession of such
property immediately after the date of the confirmation of the auction sale and administer
the same in accordance with law. Any
petition in court to enjoin or restrain the conduct of foreclosure proceedings instituted
pursuant to this provision shall be given
duecourse only upon the filing by the petitioner of a bond in an
amount fixed by the court conditioned that he will pay all the
damages which the bank may suffer by the enjoining or therestraint of the foreclosure
proceeding.Notwithstanding Act 3135, juridical persons whose property is being sold
pursuant to an extrajudicial foreclosure, shall have the
right to redeem the property in accordance with this provisionuntil, but not after, the
registration of the certificate of foreclosure sale with the applicable Register of Deeds which in
no case shall be more than three (3) months after foreclosure, whichever is earlier. Owners of
property that has been sold in a foreclosure sale prior to the effectivity of this Act shall retain
their redemption rights until their
expiration.NOTES:1. For judicial foreclosure, the redemption period is within
one year. For extrajudicial, its 90 days from sale or
registration.2. The purpose is to give concession to the banks. Banks
cannot get properties mortgaged by those in financial
distress.3. The redemption price would be the mortgaged obligation
plus the interest as stipulated in the original obligation. Compare this with judicial fore
closure wherein the redemption price is the original price. In this case, you have to pay
more when redeeming from a bank.4. There is immediate
possession5. A motion to enjoin would not be entertained unless secured by a
bond.6. Court will fix the amount of the bond. Normally, this
would be the liability of the bank plus costs. This remedied the loopholes in Act 3135
protect the bank during foreclosures. This makes it hard to secure injunctions and it
shortens the redemption period.