PRESIDENTIAL DECREE No.

1529 PROPERTY REGISTRATION DECREE

CHAPTER V
SUBSEQUENT REGISTRATION

I
VOLUNTARY DEALINGS WITH REGISTERED LANDS

GENERAL PROVISIONS

Section 63. Foreclosure of Mortgage. (a) If the mortgage was foreclosed judicially, a certified copy of the final order of
the court confirming the sale shall be registered with the Register of Deeds. If no right of redemption exists, the certificate of
title of the mortgagor shall be canceled, and a new certificate issued in the name of the purchaser.

Where the right of redemption exists, the certificate of title of the mortgagor shall not be canceled, but the certificate
of sale and the order confirming the sale shall be registered by a brief memorandum thereof made by the Register of
Deeds upon the certificate of title. In the event the property is redeemed, the certificate or deed of redemption shall
be filed with the Register of Deeds, and a brief memorandum thereof shall be made by the Register of Deeds on the
certificate of title of the mortgagor.

If the property is not redeemed, the final deed of sale executed by the sheriff in favor of the purchaser at a foreclosure
sale shall be registered with the Register of Deeds; whereupon the title of the mortgagor shall be canceled, and a new
certificate issued in the name of the purchaser.

(b) If the mortgage was foreclosed extrajudicially, a certificate of sale executed by the officer who conducted the
sale shall be filed with the Register of Deeds who shall make a brief memorandum thereof on the certificate of title.

In the event of redemption by the mortgagor, the same rule provided for in the second paragraph of this section shall
apply.

In case of non-redemption, the purchaser at foreclosure sale shall file with the Register of Deeds, either a final deed
of sale executed by the person authorized by virtue of the power of attorney embodied in the deed of mortgage, or
his sworn statement attesting to the fact of non-redemption; whereupon, the Register of Deeds shall issue a new
certificate in favor of the purchaser after the owner's duplicate of the certificate has been previously delivered and
canceled.

Republic Act No. 8754

REPUBLIC ACT NO. 8791 AN ACT PROVIDING FOR THE REGULATION OF THE ORGANIZATION AND OPERATIONS
OF BANKS, QUASI-BANKS, TRUST ENTITIES AND FOR OTHER PURPOSES

Sec. 47. Foreclosure of Real Estate Mortgage. In the event of foreclosure, whether judicially or extra-judicially, of any mortgage on real
estate which is security for any loan or other credit accommodation granted, the mortgagor or debtor whose real property has been sold for the
full or partial payment of his obligation shall have the right within one year after the sale of the real estate, to redeem the property by paying
the amount due under the mortgage deed, with interest thereon at rate specified in the mortgage, and all the costs and expenses incurred by
the bank or institution from the sale and custody of said property less the income derived there from. However, the purchaser at the auction
sale concerned whether in a judicial or extra-judicial foreclosure shall have the right to enter upon and take possession of such property
immediately after the date of the confirmation of the auction sale and administer the same in accordance with law. Any petition in court to
enjoin or restrain the conduct of foreclosure proceedings instituted pursuant to this provision shall be given due course only upon the filing by
the petitioner of a bond in an amount fixed by the court conditioned that he will pay all the damages which the bank may suffer by the enjoining
or the restraint of the foreclosure proceeding.
Notwithstanding Act 3135, juridical persons whose property is being sold pursuant to an extrajudicial foreclosure, shall have the right to redeem
the property in accordance with this provision until, but not after, the registration of the certificate of foreclosure sale with the applicable
Register of Deeds which in no case shall be more than three (3) months after foreclosure, whichever is earlier. Owners of property that has
been sold in a foreclosure sale prior to the effectivity of this Act shall retain their redemption rights until their expiration.

State Investment House, Inc. vs. Court of Appeals, 215 SCRA 734 (1992) - the redemptioner faced with such a
problem may preserve his right of redemption through judicial action which in every case must be filed within the
one-year period of redemption. The filing of the court action to enforce redemption, being equivalent to a formal
offer to redeem, would have the effect of preserving his redemptive rights and freezing the expiration of the one-
year period. This is a fair interpretation provided the action is filed on time and in good faith, the redemption price
is finally determined and paid within a reasonable time, and the rights of the parties are respected.