FORECLOSURE PROCEEDINGS: PERSONAL NOTICE TO THE MORTGAGOR IS NOT NECESSARY FOR THE VALIDITY OF THE PROCEEDINGS

In Philippine National Bank v. Nepomuceno Productions, Inc., the Supreme Court emphatically stated that the personal notice to the mortgagor is not necessary for the validity of the foreclosure proceedings.  Thus:

"The principal object of a notice of sale in a foreclosure of mortgage is not so much to notify the mortgagor as to inform the public generally of the nature and condition of the property to be sold, and of the time, place, and terms of the sale. Notices are given to secure bidders and prevent a sacrifice of the property. Clearly, the statutory requirements of posting and publication are mandated, not for the mortgagor’s benefit, but for the public or third persons. In fact, personal notice to the mortgagor in extrajudicial foreclosure proceedings is not even necessary, unless stipulated." x x x (RESORT HOTELS CORPORATION vs. DEVELOPMENT BANK OF THE PHILIPPINES and SM INVESTMENT CORPORATION, G.R. No. 180439, December 23, 2009, NACHURA, J.).