Flashcards Studio

Facts: In the Regional Trial Court of Cebu, Arcadia Mortgage Corp. (AMC) files for foreclosure of a real estate mortgage on a parcel of land located in Cebu City, titled in the name of absentee owner Fernando Reyes, who resides abroad. The land lies within the court’s territorial jurisdiction. Reyes has not been personally served; AMC obtains service by publication due to unknown heirs and unknown liens to the land. After trial, the court renders a judgment foreclosing the mortgage and orders the sale of the property to satisfy AMC’s loan. (a)Identify the correct classification of this action under the Rules of Court (In Rem, In Personam, or Quasi In Rem) and briefly state why. (b)How would your answer change if instead AMC had filed only a money claim against Reyes to be satisfied out of the land’s value and not for foreclosure of the mortgage? (c)What is the effect of the judgment on third parties with an interest in the land and on Reyes if he did not appear?