Practice question
In a deficiency suit, the defendant defaults. The creditor offers only an unsupported demand figure and no competent proof of the debt immediately before foreclosure or the proceeds applied. It argues default requires an award of every amount demanded. What does Prieto establish?
- Default proves every numerical allegation conclusively without evidence.
- The creditor may omit foreclosure proceeds in every default case.
- A demand letter automatically substitutes for every ledger and sale record.
- The claimant must still substantiate the deficiency, including the pre-foreclosure obligation and foreclosure proceeds.
- The court must award the entire original debt plus the sale price.
Legal references
- https://www.lawphil.net/courts/rules/rc_1-71_civil.html — Rules of Court, Rule 68 section 6: deficiency and personal liability.
- https://lawphil.net/judjuris/juri2023/aug2023/gr_259282_2023.html — Spouses Prieto v BPI, GR 259282, August 30 2023, main opinion: proof of obligation and foreclosure proceeds.
- https://www.lawphil.net/judjuris/juri2021/apr2021/gr_203194_2021.html — Asset Pool A v Spouses Berris, GR 203194, April 26 2021, main opinion: deficiency after termination of foreclosure; no splitting of cause of action.
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, article2085: third-party real security.
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