LAW:

RULE 68
Section 6. Deficiency judgment. — If upon the sale of any real property as provided in the next
preceding section there be a balance due to the plaintiff after applying the proceeds of the sale,
the court, upon motion, shall render judgment against the defendant for any such balance for
which, by the record of the case, he may be personally liable to the plaintiff, upon which
execution may issue immediately if the balance is all due at the time of the rendition of the
judgment; otherwise; the plaintiff shall be entitled to execution at such time as the balance
remaining becomes due under the terms of the original contract, which time shall be stated in
the judgment. (6a)

G.R. 74730 [AUGUST 25, 1989]

In general, a deficiency judgment is in the nature of an ordinary money judgment, may

constitute a cause of action and is barred by the statute of limitations applicable to ordinary
judgment (59 C.J.S. 1497). The ten (10) year period provided in Articles 1142 and 1144 of the Civil
Code applies to a suit for deficiency judgment, to wit:

Art. 1142. A mortgage action prescribes after ten years. (1964a)

Art. 1144. The following actions must be brought with ten years from the time
the right of action accrues:
(1) Upon a written contract;
(2) Upon an obligation created by law;
(3) Upon a judgment. (n)
A suit for the recovery of the deficiency after the foreclosure of a mortgage is in the nature of a
mortgage action because its purpose is precisely to enforce the mortgage contract;

GR 169568 [OCTOBER 22, 2014]

In contrast, the registration of the sale is superfluous in judicial foreclosure because only the
equity of redemption is granted to the mortgagor, except in mortgages with banking
institutions. The equity of redemption is the right of the defendant mortgagor to extinguish the
mortgage and retain ownership of the property by paying the secured debt within the 90-day
period after the judgment becomes final, or even after the foreclosure sale but prior to the
confirmation of the sale.

Equity of redemption is based on rule 68 section 2, as follows;

RULE 68
Section 2. Judgment on foreclosure for payment or sale. — If upon the trial in such action the
court shall find the facts set forth in the complaint to be true, it shall ascertain the amount due
to the plaintiff upon the mortgage debt or obligation, including interest and other charges as
approved by the court, and costs, and shall render judgment for the sum so found due and order
that the same be paid to the court or to the judgment obligee within a period of not less than
ninety (90) days nor more than one hundred twenty (120) days from the entry of judgment,
and that in default of such payment the property shall be sold at public auction to satisfy the
judgment. (2a)

G.R. 128567

This is the mortgagors equity (not right) of redemption which, as above stated, may be exercised
by him even beyond the 90-day period from the date of service of the order, and even after the
foreclosure sale itself, provided it be before the order of confirmation of the sale. After such
order of confirmation, no redemption can be effected any longer.