REAL ESTATE MORTGAGE WITH

EXTRA JUDICIAL FORECLOSURE AGREEMENT

BASIC PHILIPPINE LEGAL FORMS

This is a sample real estate mortgage contract commonly used in the Philippines. This real estate contract likewise contains an extra-judicial foreclosure agreement.

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REAL ESTATE MORTGAGE

KNOW ALL MEN BY THESE PRESENTS:

             I, (complete name of mortgagor),  Filipino,  of legal age,  single/married and a resident of________________, hereinafter known as the MORTGAGOR;

-            and  -

(Complete name of mortgagee) , Filipino, of legal age,  single and a resident of __________,   Philippines ,  hereinafter known as the MORTGAGEE:

 W I T N E S S E T H:

            1.  That for and in consideration of the sum of  TEN THOUSAND (Php10,000.00),  Philippine Currency, which the MORTGAGOR has obtained from the MORTGAGEE,  and to secure the payment of the same with the agreed interest thereof,  the MORTGAGOR hereby transfer and convey by way of mortgage unto the MORTGAGEE,  their heirs,  successors,  executors,  administrators or assigns the following parcel of land covered by and described in Transfer Certificate of Title No. ______ of the Office of the Registry of Deeds of ______  more particularly described as follows:

TRANSFER CERTIFICATE OF TITLE NO _____

Enter description of land

all of which the MORTGAGOR declare to be his/her real property and absolute owner thereof,  free from all liens and encumbrances;

            2.  That if the obligations herein secure,  or any of the amortization of such indebtedness should be unpaid when due or upon non-compliance with any of the conditions and stipulations herein agreed,  or if the MORTGAGOR,  during the time the mortgage is in force,  instituted solvency proceedings or be involuntarily declared insolvent,  or if the proceeds of this loan/credit line should be used or applied for purposes other than those specified herein,  or if this mortgage cannot be recorded in the corresponding Registry of Deeds,  then all the obligations secured by this mortgage and all the amortization thereof shall immediately become due,  payable and defaulted.

           3. And the MORTGAGEE may immediately foreclose this real estate mortgage extrajudicially in accordance with Act No. 3135,  as amended,  to sign all documents and perform any act requisite and necessary to accomplish said purpose.  In case of judicial foreclosure the MORTGAGOR hereby consents to the appointment of the MORTGAGEE or of any of its designates as receiver,  without any bond,  to take charge of the mortgage property at once,  and to hold possession of the same and the rents,  benefits and profits derived from the mortgaged property before the same,  less the costs and expenses of the receivership;  the MORTGAGOR hereby agrees further that,  in all cases,  attorney’s fees is hereby fixed at 25% of the total indebtedness then unpaid,  which in no case shall not be less than Php500.00 exclusive of all cost and fees allowed by law,  and the expenses of collection shall be the obligation of the MORTGAGOR and shall with priority,  be paid to the MORTGAGEE out of any sums realized from the sale of said property and this mortgage shall likewise stand as security therefor.  It is hereby agreed that the period or periods granted for the payment  of  the amortization and/or obligations secured by  his mortgage is for the mutual benefit of both MORTGAGOR and the MORTGAGEE.  The MORTGAGEE may be a bidder at the sale of the properties hereby mortgage to it,  whether under foreclosure proceedings,  or under the powers of sale herein provided,  or otherwise.  The remedy of the MORTGAGEE under the powers of sale hereby conferred upon it shall  be,  and is in addition to and cummulative with such right of action as the MORTGAGEE may have in accordance with the present or any future laws of the Philippines .  It is hereby agreed that in the case of foreclosure of this mortgage under Act No. 3135,  the auction sale shall be held at the capital province;  and in case of judicial execution of this obligation or any part of it,  the debtor waive all their rights under the provisions of Rule 39 Section 12 of the Rules of Court,  Art. 232 of Republic Act No. 386,  known as the Civil Code of the Philippines, and the proper venue of the foreclosure suit thereto corresponding,  where the mortgage may institute the foreclosure suit is the Regional Trial Court of _______ City elsewhere at the election of said MORTGAGEE;

 4. It is of the essence of this contract that if the MORTGAGOR fails to pay the principal obligation then this mortgage shall be foreclosed and the above-mentioned property/ies shall be sold in accordance with law;  but,  if the MORTGAGOR pay said obligation together with the interests,  then this mortgage shall become null and void and of no effect.

In Witness Whereof,  we have hereunto set our hands this _____________ at________ City,   Philippines .

____________             

                Mortgagor                           

                          With my marital consent:

                                           _________

                                             Husband

Signed In The Presence Of:  ___________  &  ___________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

CITY     OF      ________      )S.S.

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