RULE 68
the confirmation of the foreclosure sale.
G.R. No. L-11721 April 3, 1918
ANDRES GRIMALT, plaintiff-appellee,
vs.
MACARIA V. VELAZQUEZ, and SY
QUIO, defendants-appellants.
FACTS
The plaintiff, Grimalt, brought an action to
foreclose a mortgage upon defendant's
property. Judgment was rendered for plaintiff
and, not having paid within the time limited,
the mortgaged property was offered for sale.
The highest bidder at the sale was Sy Quio,
the appellant, who paid the Sheriff the full
amount of his bid. The court, without notice
to the mortgagor, affirmed the sale upon the
motion of the purchaser. Shortly after the
mortgagor moved to set aside the order of
affirmance upon the ground that it was void
for lack of notice, and at the same time
deposited the full amount due under the
judgment of foreclosure, with interest and
costs. The court granted the motion to set
aside the affirmance of the foreclosure sale,
but imposed upon the mortgagor the
condition of paying Sy Quio interest at the
rate of 10 per cent per annum upon the
amount of his bid from the time it was paid
to the sheriff until its return to the bidder.
From that part of the decision decreeing the
payment of interest the judgment debtor
appealed, as did the bidder. Sy Quio, from
that part of the decree by which the
affirmance of the sale to him was set aside.
The appeal of Sy Quio was disposed of by a
decision dated October 2, 1917. The present
decision relates only to the appeal of the
mortgagor.
WON equity of redemption is cut off upon
Yes. Persons who bid at a foreclosure sale
are assumed to know that the mere fact of
being the highest bidder does not vest such
bidder with the ownership of the property.
The action by which the ownership of the
property is conveyed is the approval of the
sale by the court. If the debtor discharges the
obligation at any time before a valid order is
entered, confirming the sale, the right of the
bidder is limited to the return of the money
paid by him to cover his bid. The debtor, in
paying the creditor the amount of the
judgment for the purpose of discharging his
property from the lien of the mortgage of
discharging his property from the lien of the
mortgage, infringes no right whatever of the
bidder.
WON the mortgagor is to pay the bidder
interest upon sum deposited by him
Negative. Interest is payable by virtue of a
contractual undertaking, or as a result of the
breach of an obligation after the obligor has
been put in default. With respect to one who
becomes a bidder at a foreclosure sale, the
owner of the mortgaged property is in no
sense a debtor of any person who voluntarily
takes part in the bidding.
ruizsharmine