Practice question
A debtor argues that a judicial finding of equitable mortgage means the creditor never advanced any recoverable funds. The advance and debt are proved. Which response follows the 2026 MAIN ruling in Lambo?
- The security characterization is consistent with enforcing reimbursement of the principal advance
- Every equitable mortgage is a gift
- A mortgage cannot secure a loan
- A failed sale automatically means no principal obligation can exist
- Only a future new loan can be recovered
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1602–1604,2088.
- Lambo GR269085 February2026 MAIN: https://lawphil.net/judjuris/juri2026/feb2026/gr_269085_2026.html Principal debt and equitable mortgage.
- Spouses Lontoc GR217860 January29,2024 MAIN: https://lawphil.net/judjuris/juri2024/jan2024/gr_217860_2024.html Scope of relief and foreclosure distinction.
- GR244422 July2022 MAIN: https://lawphil.net/judjuris/juri2022/jul2022/gr_244422_2022.html Mortgagee remedy.
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