Foreclosure Exemption for Rural Bank Loans

Republic Act No. 7353 establishes an exemption from the newspaper publication requirement for certain rural bank loan foreclosures.
Section 6, paragraph 3 of Republic Act No. 7353 governs when foreclosure of mortgages covering rural bank loans is exempt from publication in newspapers required by law.
The same Section 6, paragraph 3 sets posting and proof requirements as the substitute publication method.
The rule also contains redemption protection measured by time and by whether the property is under a Torrens Title.

Section 6, paragraph 3 of Republic Act No. 7353 provides a streamlined publication method for rural bank mortgage foreclosures while preserving borrower redemption rights.
The law balances foreclosure processes with the protection of vulnerable borrowers by ensuring a substitute notice system through posting.

The exemption applies to the foreclosure of mortgages covering loans granted by rural banks.
The exemption extends to executions of judgment thereon involving real properties levied upon by a sheriff.
The posting substitute applies to foreclosure-related notices of foreclosure and execution of judgment.
The rule is tied to the total amount of the loan, stated excluding interest due and unpaid.

Section 6, paragraph 3 of Republic Act No. 7353 exempts newspaper publication where the total amount of the loan, excluding interest due and unpaid does not exceed PHP 100,000.00.
The exemption also applies for such amount as the Monetary Board may prescribe as warranted by prevailing economic conditions.

When the exemption applies, it is sufficient publication if the notices of foreclosure and execution of judgment are posted.
Notices must be posted in the most conspicuous area of each of the following locations:
- the municipal building;
- the municipal public market;
- the rural bank;
- the barangay hall; and
- the barangay public market, if any.
Posting must be done where the land mortgage is situated.
The required posting period is for sixty (60) days immediately preceding the public auction or execution of judgment.

Section 6, paragraph 3 of Republic Act No. 7353 requires proof of posting as publication.
Proof of publication must be accomplished by an affidavit of the sheriff or officer conducting the foreclosure sale or execution of judgment.
The affidavit proving publication must be attached with the records of the case.

Section 6, paragraph 3 of Republic Act No. 7353 grants a redemption right to a homesteader or free patent holder and his heirs.
Redemption must be exercised within one (1) year from the date of foreclosure when the land is not covered by a Torrens Title.
Redemption must be exercised within one (1) year from the date of registration of the foreclosure when the land is covered by a Torrens Title.

Section 6, paragraph 3 of Republic Act No. 7353 allows a rural bank to foreclose lands mortgaged to it.
Foreclosure by the rural bank is conditioned on the lands being covered under Republic Act No. 6657.

Real estate mortgages executed and registered with the Registry of Deeds before April 2, 1992 but foreclosed after effectivity are covered by the same statutory rule on exemption.
Such coverage applies if the total amount of the loan, excluding interest due and unpaid does not exceed PHP 100,000.00.
Such coverage also applies if the required posting and proof of publication are complied with.

Section 6, paragraph 3 of Republic Act No. 7353 provides that borrowers, especially mere tenants, need only secure their loans with the procedure corresponding to their share.