Jul 9, 2008pactum commissoriumreal estate mortgagedacion en pagoforeclosurecivil codesupreme court

Pactum Commissorium Protecting Debtors From Unfair Foreclosure

The Supreme Court voided a dacion en pago that let a creditor automatically take mortgaged land, reaffirming the Philippine ban on pactum commissorium.


Philippine law does not allow a lender to simply take a borrower's mortgaged property when the loan is unpaid. In *Sp

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