Practice question
A creditor wins the valid foreclosure auction through a bid credited against the debt. The credit is properly established. In seeking a deficiency, the creditor proposes to disregard that credit because no physical cash passed from its own account. Which is correct?
- The valid applicable bid credit must be reflected rather than collecting that portion twice
- No cash movement means the full original debt always remains
- Every creditor bid is a donation to the borrower
- The bid automatically extinguishes every unrelated debt
- The creditor may count the bid as zero at its sole choice
Legal references
- Rules of Court: https://lawphil.net/courts/rules/rc_1-71_civil.html Rule68 Sections4–6.
- Spouses Prieto v BPI GR259282 August30,2023 MAIN: https://lawphil.net/judjuris/juri2023/aug2023/gr_259282_2023.html Proved balance and application of sale proceeds.
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