Prohibition on Court Injunctions Against Foreclosure
- Courts shall not issue restraining orders or injunctions against foreclosures undertaken as mandated.
- Exceptions exist if the borrower pays at least 20% of arrearages after foreclosure proceedings begin.
- Borrowers under injunction must pay 10% of outstanding arrearages every 30 days plus interest and charges to avoid automatic dissolution of injunction.
- Restraining orders automatically dissolve if payments are missed, with no further injunctions allowed.
- Provisions do not limit financial institutions’ discretion to restructure loans to current status, provided 20% arrearages are paid.
- Existing restraining orders or injunctions on foreclosures are lifted unless resolved by courts within 60 days.
Expedited Foreclosure Procedures
- Courts and officials must prioritize foreclosure applications by government financial institutions.
- Publication of foreclosure must occur within 5 days of application receipt.
- Auction sale of foreclosed property must take place within 10 days after the last publication.
- Certificate of Sale must be issued on the sale date and filed with the Register of Deeds within 5 days.
Immediate Possession of Foreclosed Properties
- Properties foreclosed, attached, or levied upon as satisfaction of judgments shall be delivered to government financial institutions.
- Possession may be assisted by the Armed Forces of the Philippines when necessary.
- Courts must act on petitions for writ of possession within 15 days of filing.
Reporting and Accountability Requirements
- Government financial institutions must report any official who delays foreclosure proceedings or violates the decree.
- Actions taken under the decree must be reported to the Office of the President.
- Reports on foreclosure actions must also be submitted to the Monetary Board via the Central Bank Governor according to prescribed procedures.
Effectivity of the Decree
- The decree took effect immediately upon issuance on January 31, 1974.