{"id":834,"date":"2026-05-23T01:15:31","date_gmt":"2026-05-23T01:15:31","guid":{"rendered":"https:\/\/alexi.pro\/?p=834"},"modified":"2026-05-23T01:15:31","modified_gmt":"2026-05-23T01:15:31","slug":"rights-of-redemption-and-repurchasing-foreclosed-properties","status":"publish","type":"post","link":"https:\/\/alexi.pro\/index.php\/2026\/05\/23\/rights-of-redemption-and-repurchasing-foreclosed-properties\/","title":{"rendered":"Rights of Redemption and Repurchasing Foreclosed Properties"},"content":{"rendered":"

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In the Philippine legal landscape, foreclosure does not immediately divest a property owner of all rights. Central to the protection of debtors is the\u00a0Right of Redemption<\/strong>\u2014the legal privilege granted to a mortgagor to reacquire their property after it has been sold at public auction to satisfy a debt.<\/p>\n

Understanding the nuances of redemption requires distinguishing between the two primary types of foreclosure:\u00a0Judicial<\/strong>\u00a0and\u00a0Extrajudicial<\/strong>.<\/p>\n

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1. Types of Redemption<\/h2>\n

There are two distinct stages and types of redemption recognized under Philippine law:<\/p>\n

Equity of Redemption<\/h3>\n

This applies primarily to\u00a0Judicial Foreclosures<\/strong>\u00a0(governed by Rule 68 of the Rules of Court). It is the right of the defendant-mortgagor to extinguish the mortgage and retain ownership of the property by paying the full amount of the debt, including interest and costs,\u00a0after<\/strong>\u00a0the court renders judgment but\u00a0before<\/strong>\u00a0the sale is confirmed by the court.<\/p>\n

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  • Period:<\/strong>\u00a0Usually not less than 90 days nor more than 120 days from the entry of judgment.<\/li>\n
  • Effect:<\/strong>\u00a0Once the sale is confirmed by the court, the equity of redemption is generally extinguished (except in cases involving banking institutions).<\/li>\n<\/ul>\n

    Right of Redemption (Legal Redemption)<\/h3>\n

    This applies to\u00a0Extrajudicial Foreclosures<\/strong>\u00a0(governed by Act No. 3135). This is the right of the mortgagor to repurchase the property\u00a0after<\/strong>\u00a0the auction sale has taken place.<\/p>\n

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    • Period:<\/strong>\u00a0Generally one (1) year from the date of the registration of the Certificate of Sale with the Register of Deeds.<\/li>\n<\/ul>\n
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      2. Redemption Periods and the “General Banking Law”<\/h2>\n

      While Act No. 3135 provides a one-year redemption period, the\u00a0General Banking Law of 2000 (Republic Act No. 8791)<\/strong>\u00a0introduced a significant exception for juridical persons (corporations) when the mortgagee is a bank.<\/p>\n\n\n\n\n\n\n\n
      Mortgagor Type<\/th>\nMortgagee<\/th>\nRedemption Period<\/th>\n<\/tr>\n<\/thead>\n
      Natural Person<\/strong>\u00a0(Individual)<\/td>\nBank or Individual<\/td>\nOne (1) year from registration of sale.<\/td>\n<\/tr>\n
      Juridical Person<\/strong>\u00a0(Corporation)<\/td>\nIndividual\/Non-Bank<\/td>\nOne (1) year from registration of sale.<\/td>\n<\/tr>\n
      Juridical Person<\/strong>\u00a0(Corporation)<\/td>\nBank<\/strong><\/td>\nUntil, but not after, the registration of the certificate of foreclosure sale, or\u00a0three (3) months<\/strong>\u00a0after the foreclosure, whichever is earlier.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      Note:<\/strong>\u00a0For corporations dealing with banks, the window is significantly shorter, often effectively ending once the certificate of sale is registered.<\/p><\/blockquote>\n

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      3. Redemption Price: How Much to Pay?<\/h2>\n

      To validly exercise the right of redemption, the mortgagor must tender the correct amount. Under the Rules of Court and the General Banking Law, this includes:<\/p>\n

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      1. The\u00a0purchase price<\/strong>\u00a0paid at the auction.<\/li>\n
      2. Interest<\/strong>\u00a0on the purchase price (usually 1% per month, or as stipulated).<\/li>\n
      3. Any\u00a0assessments or taxes<\/strong>\u00a0paid by the purchaser after the sale.<\/li>\n
      4. Interest<\/strong>\u00a0on those assessments\/taxes.<\/li>\n
      5. In the case of banks, all costs and expenses incurred by the bank for the custody and preservation of the property.<\/li>\n<\/ol>\n
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        4. Procedure for Exercising the Right<\/h2>\n

        To successfully repurchase the property, the following steps must be observed:<\/p>\n

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        1. Written Offer:<\/strong>\u00a0The redemptioner should make a formal written offer to the purchaser or the Sheriff who conducted the sale.<\/li>\n
        2. Tender of Payment:<\/strong>\u00a0Actual payment must be made within the redemption period. If the purchaser refuses the payment, the redemptioner must perform a\u00a0Consignation<\/strong>\u2014depositing the money with the court to freeze the period and preserve the right.<\/li>\n
        3. Certificate of Redemption:<\/strong>\u00a0Upon payment, a Certificate of Redemption is issued and must be filed with the Register of Deeds to cancel the Certificate of Sale.<\/li>\n<\/ol>\n
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          5. Right of Possession During Redemption<\/h2>\n

          During the one-year redemption period (in extrajudicial cases), the mortgagor generally remains in possession of the property. However, the purchaser may petition the court for a\u00a0Writ of Possession<\/strong>\u00a0even before the period expires, provided they post a bond. The bond is intended to indemnify the mortgagor if it is later discovered that the foreclosure was not justified.<\/p>\n

          Once the redemption period expires and no redemption is made, the right to possess becomes absolute for the purchaser, and the mortgagor can be evicted via an\u00a0ex parte<\/em>\u00a0motion for a writ of possession.<\/p>\n

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          6. Who May Redeem?<\/h2>\n

          The right is not exclusive to the original owner. It extends to:<\/p>\n

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          • The mortgagor or their successors-in-interest (heirs or assignees).<\/li>\n
          • A creditor having a lien by attachment, judgment, or mortgage on the property subsequent to the mortgage under which the property was sold (often called “Redemptioners”).<\/li>\n<\/ul>\n
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            7. Consequences of Non-Redemption<\/h2>\n

            If the mortgagor fails to redeem within the prescribed period:<\/p>\n

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            • The purchaser\u2019s right to the property becomes absolute.<\/li>\n
            • Consolidation of Title:<\/strong>\u00a0The purchaser executes an Affidavit of Consolidation, and the Register of Deeds cancels the old title (TCT) in the name of the mortgagor and issues a new title in the name of the purchaser.<\/li>\n
            • The mortgagor loses all legal claims to the property.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n