Practice question
The net proceeds and lawful later payment together satisfy the entire proved recoverable balance after foreclosure. The creditor nevertheless demands the previously calculated shortfall without accounting for that later payment. No separate charge remains. Which is correct?
- The later payment must be credited and no remaining deficiency is shown
- A deficiency can never be reduced by later payment
- The borrower must pay the same shortfall again
- The creditor’s first calculation conclusively fixes debt forever
- Payment after foreclosure is legally irrelevant
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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