Security Transactions 5: REAL ESTATE MORTGAGE

Basic Principles on the Contract of REAL ESTATE MORTGAGE.

Additional notes:
1. Posting and publication requirements in extra-judicial foreclosure are mandatory and jurisdictional requirements, which, if absent, invalidates the sale.
2. Notice to mortgagor of extra-judicial foreclosure sale is not necessary, and not a ground to invalidate the sale.
3. Purchaser at extra-judicial foreclosure sale may ask for writ of possession of property before expiration of redemption period if he files ex parte application with bond; and if after expiration of period, by invoking the aid of the court.
4. @6:18 onward, re: future property - As a general rule, a Real Estate Mortgage can only comprehend present property, meaning property currently owned by the mortgagor. However, as to future property, see the case of PEOPLE'S BANK AND TRUST CO. v. DAHICAN LUMBER COMPANY, G.R. No. L-17500, May 16, 1967, where it was ruled that "It is not disputed in the case at bar that the "after acquired properties" were purchased by DALCO in connection with, and for use in the development of its lumber concession and that they were purchased in addition to, or in replacement of those already existing in the premises on July 13, 1950. In Law, therefore, they must be deemed to have been immobilized, with the result that the real estate mortgages involved herein — which were registered as such — did not have to be registered a second time as chattel mortgages in order to bind the "after acquired properties" and affect third parties." In other words, a stipulation which subjects to the mortgage lien property and/or improvements (after-acquired properties) added to a property already mortgaged which the mortgagor may subsequently acquire, install, or use in connection with real property already mortgaged belonging to the mortgagor is valid.

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