SC CIRCULAR NO. 1-2000, January 03, 2000

For the information and guidance of all concerned, quoted hereunder
is the Resolution of the Court En Bane dated December 14, 1999 in
Administrative Matter No. 99-10-05-0 Re: Procedure in Extra-Judicial
Foreclosure of Mortgage.

“AM. No. 99-10-05-0 Re: Procedure in Extra-Judicial Foreclosure of Mortgage.

“In line with the responsibility of an Executive Judge under
Administrative Order No. 6, dated June 30, 1975, for the management of
courts within his administrative area, included in which is the task of
supervising directly the work of the Clerk of Court, who is also the
Ex-Officio Sheriff, and his staff, and the issuance of commissions to
notaries public and enforcement of their duties under the law, the
following procedures are hereby prescribed in extrajudicial foreclosure
of mortgages:

“1. All applications for extra-judicial foreclosure of mortgage
whether under the direction of the sheriff or a notary public, pursuant
to Act 3135, as amended by Act 4118, and Act 1508, as amended, shall be
filed with the Executive Judge, through the Cleric of Court who is also
the Ex-Officio Sheriff.

“2. Upon receipt of an application for extra-judicial foreclosure of mortgage, it shall be the duty of the Clerk of Court to:

a) receive and docket said application and to stamp thereon the corresponding file number, date and time of filing;

b) collect the filing fees therefor and issue the corresponding official receipt;

c) examine, in case of real estate mortgage foreclosure,
whether the applicant has complied with all the requirements
before the public auction is conducted under the direction of
the sheriff or a notary public, pursuant to Sec.4 of Act 3135, as
amended;

d) sign and issue the certificate of sale, subject to the
approval of the Executive Judge, or in his absence, the Vice-Executive
Judge; and

e) after the certificate of sale has been issued to the
highest bidder, keep the complete records, while awaiting any
redemption within a period of one (1) year from date
of registration of the certificate of sale with the Register of Deeds
concerned, after which the records shall be archived.

“Where the application concerns the extrajudicial foreclosure of
mortgages of real estates and/or chattels in different locations
covering one indebtedness, only one filing fee corresponding to such
indebtedness shall be collected. The collecting Clerk of Court shall,
apart fi-om the official receipt of the fees, issue a certificate of
payment indicating the amount of indebtedness, the filing fees
collected, the mortgages sought to be foreclosed, the real estates
and/or chattels mortgaged and their respective locations, which
certificate shall serve the purpose of having the application docketed
with the Clerks of Court of the places where the other properties are
located and of allowing the extrajudicial foreclosures to proceed
thereat.

“3. The notices of auction sale in extrajudicial foreclosure for
publication by the sheriff or by a notary public shall be published in a
newspaper of general circulation pursuant to Section 1, Presidential
Decree No. [1079], dated January 26, 1977, and non-compliance therewith
shall constitute a violation of Section 6 thereof.

“4. The Executive Judge shall, with the assistance of the Clerk
of Court, raffle applications for extrajudicial foreclosure of mortgage
under the direction of the sheriff among all sheriffs, including those
assigned to the Office of the Clerk of Court and Sheriffs IV assigned in
the branches.

“5. No auction sale shall be held unless there are at least two
(2) participating bidders, otherwise the sale shall be postponed to
another date. If on the new date set for the sale there shall not be at
least two bidders, the sale shall then proceed. The names of the
bidders shall be reported by the sheriff or the notary public who
conducted the sale to the Clerk of Court before the issuance of the
certificate of sale.

“This Resolution amends or modifies accordingly Administrative
Order No. 3 issued by then Chief Justice Enrique M. Fernando on 19
October 1984 and Administrative Circular No. 3-98 issued by [then] Chief
Justice Andres R. Narvasa on 5 February 1998.

“The Court Administrator may issue the necessary guidelines for the effective enforcement of this Resolution.

“The Clerk of Court shall cause the publication of this Resolution
in a newspaper of general circulation not later than 27 December 1999
and furnish copies thereof to the Integrated Bar of the Philippines.

“This Resolution shall take effect on the fifteenth day of January of the year 2000.

“Enacted this 14Ul day of December 1999 in the City of Manila.”

January 3, 2000.