Civil Law, 2022 Bar — Question II-11

ESSAY

Ely borrows Php 2,000,000.00 from Mia and mortgages a parcel of land to secure the loan. The mortgage provides for a 5% monthly interest, a five-year maturity period, a default provision in case of non-payment of interest or principal, and an extrajudicial foreclosure provision. On the fourth year, Ely fails to pay interest for three consecutive months. After sending a demand letter, Mia declares Ely in default and extrajudicially forecloses the mortgage. Mia is the highest bidder in the foreclosure sale and consolidates ownership upon the lapse of the redemption period. Can Ely have the foreclosure annulled and recover the property? Explain briefly. (5 points)

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