Revised Rules on Acquisition of Mortgaged Agricultural Lands

Banks: Include various banking institutions performing banking functions in the Philippines.
Mortgage: Contract using real property as security for debt.
Mortgagor: Owner pledging property as security.
Mortgagee: Holder of mortgage rights, usually banks/financial institutions.
Foreclosure: Procedure terminating mortgagor’s rights via sale on default.
Redemption: Mortgagor’s act of reclaiming property post-foreclosure.
Right of Redemption: Mortgagor’s legal right to redeem within set periods post-sale.
Equity of Redemption: Right to redeem property before foreclosure sale confirmation.

Covers all agricultural lands subject to mortgage or foreclosure.
Excludes cases where mortgagee is already registered title owner at acquisition start.

Mortgagee is new landowner if:
a) They purchased the foreclosed property and redemption period expired.
b) Foreclosure sale confirmed by court if only equity of redemption applies.

Mortgagee considered lien-holder if:
a) Mortgage debt not due.
b) Debt due but no foreclosure initiated.
c) Foreclosure occurred but redemption period ongoing or sale not confirmed.

Mortgagee may cancel mortgagor’s title and issue new title after redemption period or court confirmation.
Failure to issue title triggers transfer to government per DAR AO 2 (1996).
Supporting documents required include court orders or affidavits of non-redemption.

Taxes, fines, penalties, registration fees, and other charges must be paid before title registration.
If mortgagee fails to pay within 15 days after notice, Land Bank of the Philippines (LBP) deducts these from claim proceeds.

As new landowner:
1. Receive official notices and correspondence.
2. Exclusive transaction rights with DAR/LBP.
3. Recipient of cash/bond deposits.
4. Receive land transfer claim proceeds minus deductions.
As lienholder:
1. Collect payment up to compensation value.
2. Receive notices regarding mortgagor’s obligations.

As new landowner:
1. Comply with claim processing including surrender of original title copy.
2. Sign all required land transfer documents.
As lienholder:
1. Issue mortgage release or redemption deed post-payment.
2. Sign documents to cancel mortgage.

Steps include claim processing by DAR/LBP, notice issuance, consolidation of ownership, acceptance/rejection of valuation, title issuance, and payment processing.
Detailed documentary requirements such as CARP forms and affidavits for consolidation and title issuance are mandated.

If redemption period not expired or sale unconfirmed, mortgagee paid mortgage debt up to compensation value.
Applies guidelines from DAR AO 2 (1996).

Order effective 10 days after publication in two national newspapers as mandated by law.