SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Se$sion 
SENATE 
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Introduced by SENATOR FERDINAND R. MARCOS, JR. 
AN ACT SETTING A UNIFORM PERIOD FOR THE REDEMPTION 
OF FAMILY HOMES SOLD AT FORECLOSURE SALES, EXECUTION SALES 
AND OTHER FORCED SALES, AND FOR OTHER PURPOSES 
Explanatory Note 
In its 1948 Report, the Code Commission on the Proposed Civil Code of 
the Philippines perfectly captured and recognized that, "(t)he home is the seat 
and symbol of family affections and it should not be liable to be seized for debts 
except in certain special cases." It furthered that, "the family home is a sacred 
symbol of family love and is the repository of cherished memories that last during 
one's lifetime. When a home is seized by creditors it seems as though the heart 
of the family were shattered." Hence, the Code Commission concluded with 
firm conviction that, "(t)he family home needs and is deserving of the protection 
of the law.". 
The policy declaration of the New Civil Code of the Philippines remains all 
the more true and applicable to this day-almost sixty-five years (65) later-with 
the country experiencing a massive backlog in housing, which unfortunately is 
predicted to balloon to 5.6 million units by 2016 (2013 Year-End Report, Housing 
and 
Urban 
Development 
Coordinating 
Council 
[HUDCC) 
[www.hudcc.gov.ph/Stats.aspx?name=Year-end%20Report) [accessed on 20 
March 2014)). 
The Filipino family home is currently protected under the New Civil Code 
through exemption from execution, forced sale or attachment, except when 
the forced sale is due to tax liability, to debts incurred prior to the constitution of 
the family home, to mortgage debts where the family home was used as 
collateral, and to debts owing to workers who had rendered service or fumished 
materials for the construction of the family home. 
However, this protection is not enough. There is a need to reinforce the 
protection and extend its reach even to the exceptions provided under the Civil 
Code. At the same time, it is important to balance these benefits accorded to 
the preservation of the family home with the rights and interests of the creditors 
and obligees, which too are equally deserving of our protection and 
preservation. It is believed that setting a longer redemption period for family 
homes, granting additional possessory rights, and opportunities for novation, 
condonation and restructuring programs will be a reasonable compromise 
between them. 


Through this legislation, and consistent with the age-old national policy 
that views the family home as a "sacred symbol" of the Filipino family, it is just 
proper not only to help preserve and perpetuate the family home in the face of 
the family's daily economic and financial adversities, but at the same time 
alleviate the country's very pressing housing needs. 
In view of thereof, the passage of this bill is earnestly requested. 
) 
FERDINAN 
R. MARCOS, JR 


• 
• 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
SENATE BILL NO. 2186 
Introduced by Senator FERDINAND R. MARCOS, JR. 
AN ACT SETTING A UNIFORM PERIOD FOR THE REDEMPTION 
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OF FAMILY HOMES SOLD AT FORECLOSURE SALES, EXECUTION SALES 
AND OTHER FORCED SALES, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress Assembled: 
SECTION 1. Title. - This Act shall be known as "The Family Home Protection 
Act of 2014". 
SEC. 2. Declaration of Policy. - In the spirit of the New Civil Code, it is 
hereby declared the policy of the State to further protect the Filipino family 
home from being taken away from the family actually residing therein, on 
account of the personal obligations of the family members, without affording 
the family a reasonable and adequate time and opportunity to save up and 
muster the needed resources to pay for the said obligations, redeem and 
ultimately preserve the family home from seizure and dispossession. 
SEC. 3. Definition of Family Home. - For purposes of this Act, "family home" 
shall mean the house and the lot on which it stands, including a condominium 
unit under Republic Act No. 4726, which is actually occupied, both at the time 
that it is encumbered or levied upon and at the time of the forced sale thereof, 
as a family residence of the husband and the wife, or an unmarried, separated, 
or widowed head of the family, with their parents, ascendants and 
descendants, as well as their brothers and sisters, who are dependent upon 
them for th.eir chief support. 
SEC. 4. Uniform Redemption Period. -
Notwithstanding any law to the 
contrary,' a family home which is sold at a foreclosure sale, attachment or 
execution sale or other forced sale due to debt, tax liability or other personal 
obligation may be redeemed within two (2) years from the date of registration 
of the certificate of sale with the Register of Deeds in case of properties 
registered under the Torrens system, or within two (2) years from the date of the 
sale in case of untitled properties, by paying the correct amount of the 
redemption price as determined by existing appropriate laws. 
SEC. 5. Prohibition Against Eviction. -
During the two-year redemptiqn 
period provided hereunder, the family actually residing in the family home sold 
at public auction shall be protected in its possession and shall neither be evicted 


• 
nor threatened to be evicted, and the creditor, mortgagee or the purchaser in 
the foreclosure sale is prohibited from taking possession of the family home in 
whatever way or capacity. However, family actually residing therein may be 
charged reasonable rent during the said period, which shall be added to the 
amount of the redemption price. 
SEC. 6. Substantiation Requirements. - In claiming the benefits under this 
Act, the redemptioner shall accompany the exercise of the right of redemption 
with sufficient evidence, such as affidavits and other adequate records. 
SEC. 7. Other Benefits. - Even in case of failure to redeem the family home 
sold at public auction, the family actually residing therein shall still be accorded 
a right of first refusal or right of preemption, or be given priority in the repurchase, 
lease or other possible forms of possession or occupation of the said family 
home. 
SEC. 8. Continuing Efforts to Offer Novation, Condonation and Restructuring 
Programs. -
Banks, quasi-banks, financial institutions, including govemment 
housing agencies and financial institutions, shall study the feasibility and viability 
of 
offering 
to 
concemed 
borrowers-mortgagors 
reasonable 
novation, 
restructuring and condonation programs or packages of their loan obligations 
which involve family homes as mortgage collaterals, taking into consideration 
the credit worthiness and credit discipline of the borrowers, and the financial 
viability of the lending institutions. 
Government housing agencies and financial institutions shall continue to 
implement novation, restructuring 
and condonation 
progams of loan 
obligations secured by family homes, especially in the socialized and low-cost 
housing brackets, in accordance with Republic Act No. 9507, or the "Socialized 
and LOW-Cost Housing Loan Restructuring Act of 2008". 
SEC. 9. 
Separability Clause. - The provisions of this Act are hereby 
declared to be separable and if any clause, sentence, provision or section of 
this Act or its application thereof to any person or circumstance should, for any 
reason, be held invalid or unconstitutional. such invalidity or unconstitutionality 
shall not affect the other provisions or application of this Act which can be given 
force and effect. 
SEC. 10. Repealing Clause. - All laws, decrees, charters, executive orders, 
administrative orders, proclamations, rules and regulations, or parts 'thereof 
insofar as they are inconsistent with the provisions of this ,Act are hereby 
repealed or modified accordingly. 
SEC. 11. 
Effectivity. - This Act shall take effect fifteen (15) days after 
completion of pUblication in the Official Gazette or in a newspaper of general 
circulation. 
Approved,