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SPOUSES RICARDO ROSALES and ERLINDA SIBUG,  petitioners, vs. SPOUSES

ALFONSO and LOURDES SUBA, THE CITY SHERIFF OF

MANILA,respondents. G.R. No. 137792. A!"# 12, 2$$3

FACTS%

The RTC of Manila rendered a decision declaring the parties Erlinda Sibug and Ricardo

Rosales, within 90 days from finality of this decision, to deposit with the Clerk of Court, for 

 payment to the parties elicisimo Macaspac and Elena !iao, the sum of "#$,000%00, with 9

 percent interest plus the sum of "&'9%(# as reimbursement for real estate ta)es%

The petitioners howe*er failed to pay the amount which prompted the court to order the

sale of the property% +n auction sale was held and was sold to spouses +lfonso and ourdes Suba,

herein respondents, being the highest bidders% Respondents filed a motion for a writ of 

 possession, contending that the confirmation of the sale effecti*ely cut off petitioners e-uity of 

redemption% "etitioners on the other hand, filed a motion for reconsideration of the order 

confirming the sale of the property to respondents%

The trial court ruled that petitioners ha*e no right to redeem the property since the case is

for .udicial foreclosure of mortgage% /ence, respondents, as purchasers of the property, are

entitled to its possession as a matter of right%

SS1E2 3hether or not petitioners ha*e the right to redeem a mortgaged property which has been

 .udicially foreclosed%

/E42

There is no right of redemption in case of .udicial foreclosure of mortgage%

Since the parties transaction is an e-uitable mortgage and that the trial court ordered its

foreclosure, e)ecution of .udgment is go*erned by Sections & and 5, Rule #6 of the '99( Rules of Ci*il"rocedure, as amended, -uoted as follows2

SEC% &% Judgment on foreclosure for payment or sale. f upon the trial in such action the court shall find

the facts set forth in the complaint to be true, it shall ascertain the amount due to the plaintiff upon the

mortgage debt or obligation, including interest and other charges as appro*ed by the court, and costs,

and shall render .udgment for the sum so found due and order that the same be paid to the court or to the

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 .udgment obligee within a period of not less that ninety 7908 days nor more than one hundred twenty

7'&08 days from the entry of .udgment, and that in default of such payment the property shall be sold at

 public auction to satisfy the .udgment%

SEC% 5% Sale of mortgaged property, effect. 3hen the defendant, after being directed to do so as pro*ided

in the ne)t preceding section, fails to pay the amount of the .udgment within the period specified therein,the court, upon motion, shall order the property to be sold in the manner and under the pro*isions of Rule

59 and other regulations go*erning sales of real estate under e)ecution% Such sale shall not effect the

rights of persons holding prior encumbrances upon the property or a part thereof, and when confirmed by

an order of the court, also upon motion, it shall operate to di*est the rights in the property of all the parties

to the action and to *est their rights in the purchaser, sub.ect to such rights of redemption as may be

allowed by law%

Clearly, as a general rule, there is no right of redemption in a .udicial foreclosure of 

mortgage% The only e)emption is when the mortgagee is the "hilippine ational :ank or a bank or a

 banking institution% Since the mortgagee in this case is not one of those mentioned, no right of redemption

e)ists in fa*or of petitioners% They merely ha*e an e-uity of redemption, which, to reiterate, is simply

their right, as mortgagor, to e)tinguish the mortgage and retain ownership of the property by paying the

secured debt prior to the confirmation of the foreclosure sale% /owe*er, instead of e)ercising this e-uity

of redemption, petitioners chose to delay the proceedings by filing se*eral manifestations with the trial

court% Thus, they only ha*e themsel*es to blame for the conse-uent loss of their property%