EQUITY OF REDEMPTION VS. RIGHT OF REDEMPTION

In relation to mortgage, the right of redemption exists in extra-judicial foreclosure; while equity of redemption exists only in judicial foreclosure. In extrajudicial foreclosure, the mortgagor may exercise his right of redemption within 1 year from the registration of the sale in the Office of the Registry of Deeds; while in judicial foreclosure, the mortgagor may exercise his equity of redemption during the period of not less than 90 days nor more than 120 days from entry of judgment of foreclosure or even after the foreclosure sale but before the judicial confirmation of the sale. There is no right of redemption in judicial foreclosure of mortgage, except only if the mortgagee is the Philippine National Bank or any banking institution. Thus, in judicial foreclosure of mortgage where the mortgagee is the Philippine National Bank or any banking institution, there exist both equity of redemption and right of redemption. (Huerta Alba Resort v. CA, GR No. 128567, September 1, 2000).