Writ of Possession in Foreclosure Proceedings

Writ of Possession in Foreclosure proceedings
The purchaser at the public auction sale of an extrajudicially foreclosed real property may seek
possession in accordance with Section 7 of Act no. 3135, as amended by Act no. 4118.
Section 7. In any sale made under the provisions of this Act, the purchaser may petition the
Court of First Instance of the province or place where the property or any part thereof is situated, to give
him possession thereof during the redemption period, furnishing bond in an amount equivalent to the use
of the property for a period of twelve months, to indemnify the debtor in case it be shown that the sale
was made without violating the mortgage or without complying with the requirements of this Act. Such
petition shall be made under oath and filed in form of an ex parte motion in the registration or cadastral
proceedings if the property is registered, or in special proceedings in the case of property registered
under the Mortgage Law or under section one hundred and ninety-four of the Administrative Code, or of
any other real property encumbered with a mortgage duly registered in the office of any register of deeds
in accordance with any existing law, and in each case the clerk of the court shall, upon the filing of such
petition, collect the fees specified in paragraph eleven of section one hundred and fourteen of Act
Numbered Four hundred and ninety-six, as amended by Act Numbered Twenty-eight hundred and sixty-
six, and the court shall, upon approval of the bond, order that a writ of possession issue, addressed to the
sheriff of the province in which the property is situated, who shall execute said order immediately .
WHAT IS THE EFFECT OF EXPIRATION OF PERIOD OF REDEMPTION IN A MORTAGE PROPERTY?
As a General rule: Upon expiration of one year period of redemption counted from the registration of
the sale, the right of the purchaser to possession of the foreclosed property becomes absolute
In China Banking Corporation vs. Lozada, July 4, 2008, The SC held, buyer in a foreclosure sale
becomes the absolute owner of the property purchased if it is not redeemed during the period of one
year after the registration of the sale. As such, he is entitled to the possession of the said property and
can demand it at any time following the consolidation of ownership in his name and the issuance to him
of a new transfer certificate of title. The buyer can in fact demand possession of the land even during
the redemption period except that he has to post a bond in accordance with Section 7 of Act No. 3135,
as amended. No such bond is required after the redemption period if the property is not redeemed.
Possession of the land then becomes an absolute right of the purchaser as confirmed owner. Upon
proper application and proof of title, the issuance of the writ of possession becomes a ministerial duty
of the court.[
The purchaser in the public auction sale of a foreclosed property is entitled to a writ of possession; and
upon an ex parte petition of the purchaser, it is ministerial upon the RTC to issue such writ of possession
in favor of the purchaser.
Exception:
Under Sec. 35, Rule 39 of the Revised Rules of Court, which was made applicable to the extrajudicial
foreclosure of real estate mortgages by Sec. 6 Act No. 3135, the possession of the mortgaged property
may be awarded to a purchaser in extrajudicial foreclosures "unless a third party is actually holding
the property adversely to the judgment debtor." (Clapano v. Gapultos,)
In an extrajudicial foreclosure of real property, when the foreclosed property is in the possession of a
third party holding the same adversely to the defaulting debtor/mortgagor, the issuance by the RTC of
a writ of possession in favor of the purchaser of the said real property ceases to be ministerial and
may no longer be done ex parte. For the exception to apply, however, the property need not only be
possessed by a third party, but also held by the third party adversely to the debtor/mortgagor.
The exception provided under Section 33 of Rule 39 of the Revised Rules of Court contemplates a situation
in which a third party holds the property by adverse title or right, such as that of a co-owner, tenant or
usufructuary.[54] The co-owner,[55] agricultural tenant,[56] and usufructuary[57] possess the property in
their own right, and they are not merely the successor or transferee of the right of possession of another
co-owner or the owner of the property. The spouses Lozada cannot claim that their right of possession
over Unit No. 402 is analogous to any of these.
A PURCHASER IS ENTITLED TO POSSESSON FOLLOWING THE CONSOLIDATION OF OWNERSHIP
Upon the expiration of the redemption period, the right of the purchaser to the possession of the
foreclosed property becomes absolute. Thus, the mere filing of an ex parte motion for the issuance of a
writ of possession would suffice, and there is no bond required since possession is a necessary
consequence of the right of the confirmed owner. It is a settled principle that a pending action for
annulment of mortgage or foreclosure sale does not stay the issuance of the writ of possession.(PNB vs.
Gotesco, June 5, 2009)
Can a writ of possession be implemented during the pendency of the case for annulment of
mortgages?
A mortgagee is entitled to a writ of possession before extrajudicial foreclosure even before the
expiration of the period of redemption.
The law further provides that the debtor-mortgagor may petition that the sale be set aside and
the writ of possession cancelled in the proceedings in which possession was requested; and the
courts decision thereon may be appealed by either party, but the order of possession shall
continue in effect during the pendency of the appeal. (BPI v. Tampipi Dec. 10, 2008)
Nature of a writ of possession in Foreclosure Proceedings:
A petition for writ of possession is ex parte and summary in nature. It is a judicial proceeding brought
for the benefit of one party only and without notice by the court to any person having any adverse
interest.
Relief is granted without giving the person against whom the relief is sought an opportunity to be heard.
By its very nature, ex parte petition for issuance of writ of possession is non-litiguous proceeding under
Act no. 3135, as amended.
It is not strictly speaking a judicial process as contemplated in Art.433 of the Civil Code. It is a judicial
proceeding for the enforcement of ones right or possession as purchaser un a foreclosure sake. It is not
an ordinary suit filed in court.

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What is the effect of expiration of period of redemption in a mortgaged property?

Can a writ of possession be implemented during the pendency of a case for annulment of mortgages?

Writ of Possession in Foreclosure proceedings

WHAT IS THE EFFECT OF EXPIRATION OF PERIOD OF REDEMPTION IN A MORTAGE PROPERTY?

A PURCHASER IS ENTITLED TO POSSESSON FOLLOWING THE CONSOLIDATION OF OWNERSHIP

Nature of a writ of possession in Foreclosure Proceedings:

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