Addressing Overdue Mortgage Payments and Auction Sale Concerns: Your Legal Rights and Options

Q1: Can I stop the auction sale scheduled for my condominium property?

Yes, stopping the auction sale can be possible by settling the overdue amount along with any applicable fees before the date of the auction. You might explore borrowing money from another source, negotiating a payment plan with the bank, or selling assets to raise the necessary funds.

Q2: Can the bank refuse to accept staggered payments for my missed mortgage payments?

Yes, the bank can refuse to accept staggered payments. Banks have the discretion to determine the payment arrangements they will accept, especially if the contract stipulates that they can demand full payment upon default. However, it is encouraged to continuously negotiate with the bank to possibly find a middle ground that could work for both parties.

Q3: Are the legal process fee and attorney's fee charged by the bank fair?

To determine whether the fees are fair, you would need to review the mortgage agreement that you signed when you took out the loan. The agreement might stipulate the fees that can be charged in case of default. However, if you find that the fees are unconscionable or excessively high, you may negotiate with the bank to reduce them, or potentially seek legal counsel to discuss your options and possibly contest the fees.

Q4: Can I challenge the fees charged by the bank in court?

Yes, you can challenge the fees charged by the bank in court. If you believe that the fees are exorbitant or unreasonable, you may consult with a lawyer to explore the possibility of filing a case in court to contest the fees. Be prepared to present evidence to substantiate your claim that the fees are unjustified.

Q5: What other options do I have to avoid losing my condominium in the auction?

Aside from settling the overdue amount, you might also explore other options such as:

Loan Restructuring: Negotiating a restructuring of your loan with the bank to make the payments more manageable.
Selling the Property: Considering selling the property yourself before the auction date to settle the debt and possibly retain some equity from the property.
Seeking Legal Counsel: Consulting a lawyer to guide you on possible legal avenues to protect your interests.

Conclusion

Facing the legal consequences of missed mortgage payments can be a stressful experience. It is vital to understand your legal rights and options to address the situation proactively. Always review your mortgage agreement to understand the stipulated terms and negotiate with the bank to possibly find a resolution that can prevent the loss of your property through auction. If necessary, seeking the help of a lawyer can also provide you with proper guidance on how to navigate this complex situation according to Philippine law.