Hello PRIME! I’ve loaned in this particular bank amounting Php 7 million to start up my own laundry business and to secure my payment, I mortgaged my property, an open lot, located in Malate, Manila with 500 square meters. I was given 18 months of installment to pay my debt and as of now, I know that I will fail to meet my obligation. Here is my question before jumping to a conclusion. Can I offer half of my property as a payment to the bank?
Greetings! Yes, you can use your property as payment for your remaining debt in the bank as long as you and your creditor will settle into an agreement. In the Philippine law, there is what we call ‘Dacion en Pago’ which is defined as “a special mode of payment” where you, as the debtor, can offer other means of payment to the creditor, in your case half of your property. In simpler term, Dacion en pago is a payment in a form or property which is left or given to the lender to satisfy an obligation.