Title
Procedure in extra-judicial foreclosure of mortgage
Case
A.M. No. 99-10-05-0
Decision Date
Aug 7, 2001
The Supreme Court set forth procedures for extrajudicial mortgage foreclosure, outlining the responsibilities of court officials and filing requirements, effective September 1, 2001.
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Case Summary (A.M. No. 99-10-05-0)

Executive Judge's Responsibilities

  • The Executive Judge is responsible for managing courts within their administrative area.
  • This includes supervising the Clerk of Court, who also serves as the Ex-Officio Sheriff.
  • The Executive Judge is tasked with issuing commissions to notaries public and enforcing their duties under the law.

Application Filing Procedures

  • All applications for extrajudicial foreclosure of mortgages must be filed with the Executive Judge through the Clerk of Court.
  • The applications can be directed by either the sheriff or a notary public, in accordance with relevant laws (Act 3135, Act 4118, and Act 1508).

Clerk of Court's Duties Upon Application Receipt

  • The Clerk of Court must:
    • Receive and docket the application, stamping it with the file number, date, and time of filing.
    • Collect the appropriate filing fees as per Rule 141, Section 7(c), and issue an official receipt.
    • Verify compliance with requirements for real estate mortgage foreclosure before public auction.
    • Sign and issue the certificate of sale, subject to the Executive Judge's approval.
    • Ensure all fees are paid before issuing the certificate of sale, with a maximum fee limit of P100,000.00.
    • Maintain complete records for one year post-registration of the certificate of sale, after which records are archived.
    • Allow juridical persons to redeem properties until the registration of the certificate of foreclosure sale, which must occur within three months post-foreclosure.

Filing Fees and Certificates

  • For applications concerning multiple properties under one indebtedness, only one filing fee is required.
  • The Clerk of Court must issue a certificate of payment detailing:
    • The amount of indebtedness.
    • The filing fees collected.
    • The mortgages and properties involved, including their locations.
  • This certificate facilitates the docketing of applications with Clerks of Court in other jurisdictions.

Publication of Auction Sale Notices

  • Notices of auction sales for extrajudicial foreclosure must be published in a newspaper of general circulation.
  • Non-compliance with this publication requirement constitutes a violation of the relevant law (Section 6 of Presidential Decree No. 1079).

Raffle of Applications

  • The Executive Judge, with the Clerk of Court's assistance, is responsible for raffling applications for extrajudicial foreclosure among all sheriffs.
  • This includes sheriffs assigned to the Office of the Clerk of Court and Sheriffs IV in various branches.

Reporting of Bidders

  • The sheriff or notary public conducting the sale must report the names of the bidders to the Clerk of Court bef...continue reading

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