Ramirez v CA
GR No. 98147, March 5, 1993
FACTS:
On February 16, 1976, PNB granted a loan/credit accommodation in favor of Ronnie Garcia amounting to 30,000. This is secured by a first mortgage over a parcel of land. The deed of real estate mortgage was registered on the same year.
On August 18, 1977, Garcia executed a deed of second mortgage over the same property in favor of Teodoro Marmeto for an in consideration of 100,000. The encumbrance was likewise recorded in the title on 1978.
PNB extrajudicially foreclosed the mortgage upon failure of Garcia to comply with his obligation. A certificate of sale was issued on November 8, 1977.
The second mortgage was also extrajudicially foreclosed and Marmeto was likewise issued a certificate of sale on June 28, 1978.
Garcia executed a Waiver and Renunciation of Rights, with respect to the first mortgage, particularly his right of redemption of the property in favor of his father Jesus Garcia who assigned his right to Nimfa Ramirez, herein petitioner. None of the assignments was registered with the Register of Deeds.
Nimfa Ramirez paid the total redemption price to PNB which accepted it.
Since no redemption had been made as to the second mortgage, Marmeto filed with the RTC a petition for consolidation of ownership. Ramirez filed a third- party/adverse claim over the property.
DECISION OF LOWER COURTS:
(1) RTC: directed consolidation of ownership.
(2) CA: dismissed Ramirez’s petition, alleging that petitioner failed to exercise her right to redeem within the period granted by law
Hence, the current petition.
ISSUES:
(1) Whether Ramirez had acquired any right by virtue of her having redeemed the property in question
(2) What will be the effect of the redemption by Ramirez on Marmeto?
RULING:
(1) YES, Ramirez validly acquired title to the subject property by virtue of the redemption from PNB.
Contrary to CA’s ruling, her redemption is validly exercised. PNB accepted the redemption price from petitioner after 1 year period had expired. By accepting the redemption price after the statutory period for redemption had expired, PNB is considered to have waived the 1 year period within which Ramirez could redeem the property. There is nothing in the law which prevents such waiver
(2) Second mortgagee merely takes what is called an equity of redemption and thus a second mortgagee has to wait until after the debtor’s obligation to the first mortgagee has been fully settler. The rights of a second mortgagee are strictly subordinate to the superior lien of the first mortgagee.
The recording of the deeds of assignment of the right to redeem in the first mortgage would be immaterial since it cannot be denied that the foreclosure was recorded and Marmeto is charged with knowledge of his right to redeem. Having failed to redeem the property, he cannot now allege the property would be
GR No. 98147, March 5, 1993
FACTS:
On February 16, 1976, PNB granted a loan/credit accommodation in favor of Ronnie Garcia amounting to 30,000. This is secured by a first mortgage over a parcel of land. The deed of real estate mortgage was registered on the same year.
On August 18, 1977, Garcia executed a deed of second mortgage over the same property in favor of Teodoro Marmeto for an in consideration of 100,000. The encumbrance was likewise recorded in the title on 1978.
PNB extrajudicially foreclosed the mortgage upon failure of Garcia to comply with his obligation. A certificate of sale was issued on November 8, 1977.
The second mortgage was also extrajudicially foreclosed and Marmeto was likewise issued a certificate of sale on June 28, 1978.
Garcia executed a Waiver and Renunciation of Rights, with respect to the first mortgage, particularly his right of redemption of the property in favor of his father Jesus Garcia who assigned his right to Nimfa Ramirez, herein petitioner. None of the assignments was registered with the Register of Deeds.
Nimfa Ramirez paid the total redemption price to PNB which accepted it.
Since no redemption had been made as to the second mortgage, Marmeto filed with the RTC a petition for consolidation of ownership. Ramirez filed a third- party/adverse claim over the property.
DECISION OF LOWER COURTS:
(1) RTC: directed consolidation of ownership.
(2) CA: dismissed Ramirez’s petition, alleging that petitioner failed to exercise her right to redeem within the period granted by law
Hence, the current petition.
ISSUES:
(1) Whether Ramirez had acquired any right by virtue of her having redeemed the property in question
(2) What will be the effect of the redemption by Ramirez on Marmeto?
RULING:
(1) YES, Ramirez validly acquired title to the subject property by virtue of the redemption from PNB.
Contrary to CA’s ruling, her redemption is validly exercised. PNB accepted the redemption price from petitioner after 1 year period had expired. By accepting the redemption price after the statutory period for redemption had expired, PNB is considered to have waived the 1 year period within which Ramirez could redeem the property. There is nothing in the law which prevents such waiver
(2) Second mortgagee merely takes what is called an equity of redemption and thus a second mortgagee has to wait until after the debtor’s obligation to the first mortgagee has been fully settler. The rights of a second mortgagee are strictly subordinate to the superior lien of the first mortgagee.
The recording of the deeds of assignment of the right to redeem in the first mortgage would be immaterial since it cannot be denied that the foreclosure was recorded and Marmeto is charged with knowledge of his right to redeem. Having failed to redeem the property, he cannot now allege the property would be
consolidated in his name.
This however is without prejudice to his right to payment from his debtor-obligor (Ronnie Garcia) of the debt secured by the second mortgage.
This however is without prejudice to his right to payment from his debtor-obligor (Ronnie Garcia) of the debt secured by the second mortgage.
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