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Credit Transactions: Final Exam

B obtained a 2.5 million peso loan from XYZ Bank secured by a mortgage on his 500 sqm land parcel. After 3 years of non-payment, the bank initiated foreclosure proceedings on the land and house built on the land. B argues the house should be exempt as only the land was mortgaged and it is his family home. Equity of Redemption allows the mortgagor to pay the debt and recover the property while Right of Redemption allows purchase back after a foreclosure sale.

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Mayette Belgica-Cledera
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117 views1 page

Credit Transactions: Final Exam

B obtained a 2.5 million peso loan from XYZ Bank secured by a mortgage on his 500 sqm land parcel. After 3 years of non-payment, the bank initiated foreclosure proceedings on the land and house built on the land. B argues the house should be exempt as only the land was mortgaged and it is his family home. Equity of Redemption allows the mortgagor to pay the debt and recover the property while Right of Redemption allows purchase back after a foreclosure sale.

Uploaded by

Mayette Belgica-Cledera
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FINAL EXAM CREDIT TRANSACTIONS

Answer each question BRIEFLY, CONCISELY and LOGICALLY.

B obtained a loan from XYZ Bank in the amount of P 2,500,000.00, payable in three years. To secure the payment of the said loan, B mortgaged his parcel of land containing an area of 500 square meters. After three years, B failed to pay his obligation and thus, XYZ Bank initiated foreclosure proceedings, including the house which was eventually constructed therein to serve as B and his wifes permanent abode. B opposed the foreclosure proceedings and argued that the house therein should not be included in the foreclosure proceedings because: (a) only the parcel of land was mortgaged; and (b) the house is a family home, which, under the law, is exempt from execution or forced sale. Is Bs contention correct? Why or why not? (10 points)

II.

Distinguish Equity of Redemption from Right of Redemption. (5 points)

III.

A mortgaged his property to B to secure

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