I wag my head in disapproval when one of my officemates narrated to us on how a Property Assumer approached him for guidance. The person tried to apply for a refinancing option of a loan in behalf of the Housing Borrower.  However, his request was denied since the Deed of Sale & Assumption of Mortgage in his possession is null and void. Why? Here's the catch:  the one who sold and signed the document is the Caretaker, not the Borrower/Property Owner.

An identical case also happened when I was still in my former company.  This lady approached me to ask for the status of a certain housing loan.  If not for her hand-carried Deed of Sale & Assumption of Mortgage, I would not divulge her needed information. When I verified the said account, it was already consolidated and the Title was already transferred in the name of the company. The account was also scheduled for bidding on the following Friday. I advised her to post a higher bid rationalizing that someone might outbid her in just a centavo. If that would happen her P150,000.00 which she said she paid to the property owner would be considered unrecoverable financial damage.  Good that she followed my advise and won the bidding.

The Seller of the first case is obviously greedy while in the second case very subtle. However they both tried to capitalize on the property before leaving.  And they were successful.  In the first case, the Seller has no legal authority to contract the property to another person since he is only a Caretaker.  In the second case, though the Seller (also known as the Mortgagor) is the property owner yet his legal authority ceases when the redemption period of his foreclosed property expired.  By law, the rightful owner now is the Mortgagee.

As for the Buyers, they purchased the property because it was cheap - and that's gullibility (greed too). They thought they availed a bargain on a prime property but instead they got the opposite. A wasted time and money for a simple stupidity.