Judicial and extrajudicial foreclosures may be distinguished from each other as follows:
- A judicial foreclosure is governed by the Rules of Court; an extrajudicial foreclosure is governed by Act No. 3135 as amended.
- A judicial foreclosure involves the filing of an independent action; an extrajudicial judicial foreclosure does not require filing of an action.
- There is an equity of redemption in a judicial foreclosure but no right of redemption except when the mortgagee is a banking institution; there is a right of redemption in extrajudicial foreclosure of mortgage.
- In a judicial foreclosure, there could be a deficiency judgment rendered by the court; there can be no judgment for a deficiency in an extrajudicial foreclosure because there is no judicial proceeding, although recovery of the deficiency is allowed.
- In a judicial foreclosure, recovery of the deficiency can be done by mere motion for a deficiency judgment; in an extrajudicial foreclosure, the recovery of the deficiency is through an independent action and although nothing about the recovery of the deficiency is provided in Act No. 3135, there is no prohibition either.
0 Comments
Post a Comment