QuestionsQuestions (OWWA MEMORANDUM OF INSTRUCTIONS NO. 095)
First, the EDD/Regional Units must send a demand letter to the delinquent client. If ignored, the Legal Counsel must send a final demand letter for final settlement of the account.
If the delinquent client fails and continues to ignore both the demand and final demand letters, Legal Counsel may file extra-judicial foreclosure with the Sheriff’s Office pursuant to Act 3135 as amended by RA 4118.
The memorandum states that because it involves extra-judicial foreclosure in a real estate mortgage, notice to the mortgagor is imperative.
A client properly notified cannot later seek court relief alleging non-notification or assailing the procedure taken.
A notice must be sent to the mortgagor informing that foreclosure proceedings have already been filed against him/her.
Publication in a newspaper of general circulation for three (3) consecutive weeks.
Redemption takes effect one (1) year from the date of registration of the Certificate of Sale with the Registry of Deeds.
After one (1) year, the highest bidder must petition the sheriff who conducted the auction sale to issue the final deed of sale.
Extra-judicial foreclosure of chattel mortgages is pursuant to Act 1508.
No notice is needed. The memorandum explains that the mortgagor might abscond with the mortgaged property.
Posting of notice of sale is required, from 5 to 10 days but in any case not more than 10 days.
The property seized by the sheriff should be placed under his custody for 5 to 10 days.
The sheriff hires the guards, deputized by him to protect the chattel. OWWA pays for the services of the guards and other sheriff’s fees and expenses.
If no bidders appear, the mortgagee will be declared the highest bidder.
Yes. In both real and chattel foreclosure, OWWA must set a floor price and set a starting bid.
The sheriff shall preside over the sale per the rule of extra-judicial foreclosure.
Proceeds are applied to the outstanding balance of the loan. Any deficiency is without prejudice to the mortgagee instituting a separate civil action for recovery of sum of money.