Section 725.- When two or more persons have separately mortgaged their properties as security for the performance of one and the same obligation by another person and no order has been specified, the mortgagor who has performed the obligation, or whose property the mortgage has been enforced, has no right of recourse against the other mortgagors.

 

Section 726.- When several persons have separately mortgaged their properties as security for the performance of one and the same obligation by another person and an order has been specified, the release granted by the mortgagee to one of the mortgagors discharges the subsequent mortgagors to the extent of the injury suffered by them thereby.

 

Section 727.- If a person has mortgaged his property as security for the performance of an obligation by another person, the provisions of Sections 697, 700 and 701 concerning Suretyship apply mutatis mutandis.

 

CHAPTER IV

ENFORCEMENT OF MORTGAGE

 

Section 728.- For enforcement of mortgage the mortgagee must notify the debtor in writing to perform his obligation within a reasonable time to be fixed in the notice. If the debtor fails to comply with such notice, the mortgagee may enter an action in Court for a judgment ordering the mortgaged property to be seized and sold by public auction.

 

Section 729.- In addition to the remedy provided in the foregoing Section, the mortgagee is entitled to claim foreclosure of the mortgage, subject to the following conditions :

              (1) The debtor has failed to pay interest for five years ;

              (2) The mortgagor has not satisfied the Court that the value of the property is greater than the amount due ;

              (3) There are no other registered mortgages or preferential rights on the same property.

 

Section 730.- When one and the same property is mortgaged to several mortgagees, they rank according to the respective dates and hours of registration, and the earlier mortgagee shall be satisfied before the later one.

 

Section 731.- A later mortgagee cannot enforce his right to the injury of an earlier one.

 

Section 732.- The net proceeds of the auction shall be distributed to the mortgagees according to their ranks, and the surplus, if any, shall be delivered to the mortgagor.

 

Section 733.- If the estimated value of the property, in case of foreclosure, is or the net proceeds, in case of auction, are less than the amount due, the debtor of the obligation is not liable for the difference.