Kinds of extrajudicial foreclosure sale

There are three kinds of extrajudicial foreclosure sale. These are:

1. An ordinary execution sale which is governed by the pertinent provisions of Rule 39 of the Rules of Court;
2. A judicial foreclosure sale which is governed by Rule 68 of the Rules of Court; and
3. An extrajudicial foreclosure sale which is governed by Act 3135, as amended by Act 4118, otherwise known as “An Act to Regulate the Sale of Property Under Special Powers Inserted In or Annexed to Real Estate Mortgages."

Distinction should be made of the three different kinds of sales under the law, namely: an ordinary execution sale, a judicial foreclosure sale, and an extrajudicial foreclosure sale. An ordinary execution sale is governed by the pertinent provisions of Rule 39 of the Rules of Court. Rule 68 of the Rules of Court applies in cases of judicial foreclosure sale. On the other hand, Act No. 3135, as amended by Act No. 4118 otherwise known as "An Act to Regulate the Sale of Property under Special Powers Inserted in or Annexed to Real Estate Mortgages" applies in cases of extrajudicial foreclosure sale. A different set of law applies to each class of sale mentioned. (DBP v. CA & Emerald Resort Hotel Corp., G.R. No. 125838, Jun. 10, 2003)