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Real Estate Mortgage

SHFC agreement for real estate mortgage

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This REAL ESTATE MORTGAGE is made and executed by:
__________________________________________________, of legal age, single/married with
residence and postal address at _________________________________________________,
hereinafter referred to as the ACCOMMODATION MORTGAGOR;

-and-

________________________________________________________, an existing homeowners
association (HOA) duly organized and registered with the Housing and Land Use Regulatory
Board
(HLURB),
with
principal
address
at
_______________________________________________, represented herein by its duly
authorized President, _________________________, hereinafter referred to as the
ACCOMMODATED DEBTOR-MORTGAGOR;
-IN FAVOR OFSOCIAL HOUSING FINANCE CORPORATION (SHFC), a private corporation duly
organized and existing under and by virtue of Philippine laws, with principal office at 5th Floor,
Banco de Oro Plaza, Paseo de Roxas, Makati City, represented herein by its duly authorized
President, _______________________________, hereinafter referred to as the CREDITORMORTGAGEE;
WITNESSETH:
WHEREAS, the SHFC is the lead government agency that implements the Community
Mortgage Program (CMP) of the national government, the primary objective of which is to assist
residents of blighted or depressed areas to own the lots they occupy, or where they choose to
relocate to, and eventually improve their neighborhood and homes to the extent of their
affordability.
WHEREAS, the ACCOMMODATION MORTGAGOR is the present registered owner
of the parcel/s of land located at ____________________________________________covered
by Transfer Certificate of Title (TCT) Number/s________________________, consisting of
__________________________________________ (________) square meters, hereinafter
referred to as the “MORTGAGED PROPERTY.”
WHEREAS, the ACCOMMODATED DEBTOR-MORTGAGOR is a duly registered
HOA composed of informal settler families who belong to homeless and underprivileged sector
of society and is seeking loan under the CMP to finance the acquisition of the said Mortgaged
Property owned by the ACCOMMODATION MORTGAGOR;
WHEREAS, pending the execution of necessary documents by ACCOMMODATION
MORTGAGOR to effect the transfer of title over the said Mortgaged Property in the name of
ACCOMMODATED DEBTOR-MORTGAGOR, the parties hereto agree on the following terms
and conditions:
1. Pursuant to the terms of the Loan Agreement dated _____________________
executed between ACCOMMODATED DEBTOR-MORTGAGOR and CREDITORMORTGAGEE to finance the acquisition of the Mortgaged Property presently owned
by the ACCOMMODATION MORTGAGOR; and in order to secure the obligations
(both present and future loans) of the ACCOMMODATED DEBTORMORTGAGOR in favor of the CREDITOR-MORTGAGEE, in the amount of
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PESOS:
__________________________________________________________________
(PhP __________________), including interest, penalties and other charges accruing,
the ACCOMMODATION MORTGAGOR transfers and conveys by way of First
Mortgage to the CREDITOR-MORTGAGEE, its successors-in-interest or assigns, the
real estate(s) which is/are more particularly described herein and/or a supplementary
list appended hereto, together with all the buildings and improvements now existing
or which may thereafter exist on the said real estate(s), hereinafter referred to as the
MORTGAGED PROPERTY of which the ACCOMMODATION MORTGAGOR is
the absolute owner, free from all liens and encumbrances of whatever nature.
2. Except for the intended sale of the property by
ACCOMMODATION
MORTGAGOR in favor of the ACCOMMODATED DEBTOR-MORTGAGOR, the
former hereby declares and warrants that there exists no other transaction or
document affecting the property subject of mortgage, previously presented for, and/or
presently pending registration before the Registry of Deeds of any city or province;
3. The ACCOMMODATION MORTGAGOR hereby covenants that he/she has a true,
valid and perfect title to the subject property, the same is free from any lien or
encumbrance; and that he/she will forever warrant and defend the same against all
claims whatsoever;
4. Upon transfer by the ACCOMMODATION MORTGAGOR to the
ACCOMMODATED DEBTOR-MORTGAGOR of the absolute ownership to the
Mortgaged Property either through sale or any evidence of transfer of ownership, the
ACCOMMODATED DEBTOR-MORTGAGOR shall assume this mortgage and the
property shall continue to stand as security for the payment of the obligations of the
latter under the aforesaid Loan Agreement without the necessity of executing another
Real Estate Mortgage document. Furthermore, all provisions under this Real Estate
Mortgage shall remain in full force and effect.
5. In case the ACCOMMODATED DEBTOR-MORTGAGOR executes subsequent
promissory notes, this mortgage shall also stand as security thereof without necessity
of executing a new contract;
6. This Real Estate Mortgage is constituted under the following conditions:
6.1.

The ACCOMMODATED DEBTOR-MORTGAGOR shall keep the
Mortgaged Property in good condition, he/she shall maintain the integrity,
quality and sufficiency of the Mortgaged Property at a level acceptable to or
directed by the CREDITOR-MORTGAGEE.

6.2.

The ACCOMMODATION MORTGAGOR, prior to the transfer of title over
the Mortgaged Property in the name of the ACCOMMODATED DEBTORMORTGAGOR, shall not subdivide, lease, sell, dispose, mortgage, or
encumber the Mortgaged Property without prior written consent of the
CREDITOR-MORTGAGEE nor commit any act which may impair directly
or indirectly, the value of the said Mortgaged Property. Likewise, the
ACCOMMODATED DEBTOR-MORTGAGOR, whether or not the
Mortgaged Property is transferred in its name shall not subdivide, lease, sell,
dispose, mortgage, or encumber the Mortgaged Property without prior written
consent of the CREDITOR-MORTGAGEE nor commit any act which may
impair directly or indirectly, the value of the said Mortgaged Property.

6.3.

If the CREDITOR-MORTGAGEE finds that the Mortgaged Property is lost,
impaired or depreciated due to any cause whatsoever, it shall declare the
obligation due and demandable, unless it shall allow the
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ACCOMMODATED DEBTOR-MORTGAGOR to substitute the Mortgaged
Property with new and/or provide additional collateral.
6.4.

Both the ACCOMMODATION MORTGAGOR and ACCOMMODATED
DEBTOR-MORTGAGOR shall allow the CREDITOR-MORTGAGEE to
inspect the Mortgaged Property during reasonable hours to ascertain its
condition or actual market value.

6.5.

The ACCOMMODATED DEBTOR-MORTGAGOR shall promptly pay all
taxes, assessments levied or assessed upon the same; he shall ensure that the
Mortgaged Property is insured at all times at his expense with the pool of
accredited insurance companies established for the purpose by the SHFC
against such risk as may be determined by and for an amount satisfactory to
the CREDITOR-MORTGAGEE and for the latter’s benefit. Both the
MORTGAGORS hereby authorize the CREDITOR-MORTGAGEE to obtain
for the DEBTOR-MORTGAGOR’S account all insurance policies required
under the Community Mortgage Program of the SHFC. Every insurance
policies obtained in connection herewith is hereby assigned to the
CREDITOR-MORTGAGEE, or its assignee notwithstanding DEBTORMORTGAGOR’s failure to endorse or deliver said policy. Any additional
insurance policy acquired by the MORTGAGORS without proper
endorsement in favor of the Mortgagee shall also be considered assigned to
the CREDITOR-MORTGAGEE. In the event of loss or damage to the
Mortgaged Property, the CREDITOR-MORTGAGEE or its assignee shall
receive and apply the proceeds of such policies to reduce or pay the
ACCOMMODATED DEBTOR-MORTGAGOR’s obligations secured
hereby or to restore or repair the damage to the Mortgaged Property
whichever the CREDITOR-MORTGAGEE may deem appropriate.

6.6.

In case the ACCOMMODATED DEBTOR-MORTGAGOR violates the
terms and conditions of the aforesaid Loan Agreement or if he fails to
perform any of the condition stipulated herein, the CREDITORMORTGAGEE may in addition to whatever legal remedies it may have by
law or agreement, declare the obligations secured by this mortgage due and
payable, and upon failure to receive full payment, the CREDITORMORTGAGEE may proceed to judicially or extra-judicially foreclose this
mortgage.

6.7.

In case of extrajudicial foreclosure under Act 3135, as amended, the auction
shall take place in the city or the province where any of the mortgaged
property is located. Effective upon the breach of any condition of this
Mortgage,
the
ACCOMMODATION
MORTGAGOR
and/or
ACCOMMODATED DEBTOR-MORTGAGOR hereby appoints the
CREDITOR-MORTGAGEE as their attorney-in-fact of, with full power of
substitution and authority to perform such acts as may be necessary to
dispose of the mortgaged property in accordance with the provision of Act
No. 3135 as amended, and pending such disposition to perform all other acts
of administration and management in the manner most advantageous to and
for the best interest of the CREDITOR-MORTGAGEE. The latter hereby
reserves its right to bid at the appropriate public auction.
In case of judicial foreclosure, the ACCOMMODATION MORTGAGOR
and/or ACCOMMODATED DEBTOR-MORTGAGOR hereby consents to
the appointment of CREDITOR-MORTGAGEE or of any of its designated
representative as Receiver, without any bond to take charge of the Mortgaged
Property at once and to hold possession of the same including the rents,
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benefits and profits derived from the Mortgaged Property before the sale, less
the cost and expenses of receivership.
The proceeds of the foreclosure sale of the Mortgaged Property shall be
applied in the following manner and order:
a.
b.
c.

Expenses and costs of foreclosure sale, including costs of
publication and attorney’s fees
Accrued interests, penalties and charges
Principal amount of obligations

6.8.

If it becomes necessary for the CREDITOR-MORTGAGEE to institute any
legal action or proceedings, judicial or extrajudicial, to enforce this mortgage,
the ACCOMMODATED DEBTOR-MORTGAGOR shall pay the
CREDITOR-MORTGAGEE as attorney’s fee a sum equivalent to at least
twenty five percent (25%) of the total amount due plus all expenses of such
action or proceedings.

6.9.

In case of judicial execution of this obligation or any part of it, the venue for
the foreclosure suit is the Regional Trial Court of Makati or elsewhere at the
option of the CREDITOR-MORTGAGEE.

6.10.

Should the Mortgaged Property be expropriated by the Government of the
Philippines or any of its branch, department, division, agency or
instrumentality, or by any province, city or municipality, all moneys paid or
which may become due and payable, or any property given in exchange as a
result of such expropriation shall be immediately delivered to the
CREDITOR-MORTGAGEE, the latter shall have the authority to collect said
moneys or receive the property given in exchange for said expropriation. The
proceeds of such expropriation shall be applied by the CREDITORMORTGAGEE
against
the
outstanding
obligations
of
the
ACCOMMODATED DEBTOR-MORTGAGOR.

6.11.

If the mortgage cannot be recorded in the corresponding Register of Deeds,
the obligations secured shall immediately become due, demandable, and
payable.

6.12.

The ACCOMMODATION MORTGAGOR shall pay the notarial fees,
documentary stamps and other expenses in connection with this mortgage
and all other transactions which may have been or may hereafter be executed
in connection herewith, as well as the fees for the registration of this and
other documents related hereto.

6.13.

All correspondence of whatever kind, pursuant to or relative to this
Agreement, shall be sent to the ACCOMMODATED DEBTORMORTGAGOR at the address given above. The mere act of the Mortgagee
mailing such correspondence postage prepaid to said address shall be a valid
and effective notice to the ACCOMMODATED DEBTOR-MORTGAGOR
for all legal purposes. In case of latter’s change of address, the Mortgagee
shall be immediately notified in writing.

6.14.

This Mortgage shall be binding upon the parties herein and their successorsin-interest and assigns.

TECHNICAL DESCRIPTION/S OF MORTGAGED PROPERTY/IES
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IN WITNESS WHEREOF, we have hereunto set our hands this _____ day of
_________________ 20____, at ________________________.

SOCIAL HOUSING
FINANCE CORPORATION
Creditor-Mortgagee

__________________________
Accommodation Mortgagor

By:

With Marital Consent:

______________________
President

________________________

__________________________
Accommodated Debtor-Mortgagor
By:
___________________________
President

SIGNED IN THE PRESENCE OF:

_________________________

___________________________

ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES )
CITY OF
) S.S.

At the above stated locality on this ____ day of __________________, before me
personally appeared:
Name

Evidence of Identity

Date & Place of Issue

known to me and to me known to be the same person who executed the foregoing instrument and
acknowledged to same to be their free and voluntary act and deed as well as that of the
corporation herein represented.
This instrument refers to a Real Estate Mortgage over _____ parcel/s of land with all the
buildings and improvement thereon and consisting of five (5) pages, including this page wherein
the Acknowledgment is written, signed by the parties and their witnesses and sealed with my
notarial seal.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal at
the place on the date abovementioned.
Doc. No.____;
Page No.____;
Book No. ____;
Series of 20___.
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