Request for Consolidation of Title of Real Properties Acquired by Bank through Foreclosure Sale

June 13, 1985 BIR RULING NO. 087-85 34-h 002-85 087-85 Gentlemen : This refers to your letter dated March 28, 1985, requesting that you be allowed to consolidate the title of real properties acquired by the bank through foreclosure sale pursuant to Revenue Memorandum Order No. 33-81. It is represented that Real Savings and Loan Association, Inc. (a Thrift Bank) acquired through foreclosure sales certain real properties covered by Transfer Certificate of Title Nos. 228563, 272940 and 275705 which were given as collateral by the borrowers-mortgagors in securing their respective loans with the bank; and that despite the lapse of the redemption period, you gave the mortgagors grace period but, still they failed to settle their obligations. In reply, I have the honor to inform you that Revenue Memorandum Order No. 33-81 provides that banks shall, within 30 days after the foreclosure sale, apply for the issuance of the certificate required by Section 34(h) of the Tax Code, as implemented by Revenue Regulations No. 8-79 as amended by Revenue Regulations No. 9-84 dated June 28, 1984 with the Revenue District Officer having jurisdiction over the place where the real property sold or disposed is located. This is in consonance with the said provision requiring the presentation of the said certification before registration of any document transferring real property is effected by the Register of Deeds. However, since the purpose of Memorandum Order No. 33-81 is to allow banks to consolidate its title to the foreclosed property, said application may be filed within 30 days after the expiration of the redemption period of one year and issuance of the certificate of final sale. aisadc Upon receipt of the application containing the required information, the Revenue District Officer shall issue the certification authorizing transfer of title to the bank in the form prescribed by Revenue Memorandum Order No. 33-81. Thereafter, the Revenue District Officer shall conduct the necessary investigation to ascertain the capital gains tax due from the debtor-mortgagor. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner