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What are the rights of lenders over collateral (in the form of vehicle)

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Arresto Menor
Sir, can you educate me with laws in terms of mortgage laws? Kasi po Joseph my cousin borrowed money from my mother amounting to 75 thousand pesos with his Van as collateral. He needed the money for his Visa application and the like. Now, it was agreed upon that the duration of the transaction will only last for a year for the reason that Joseph would come back and payback the borrowed money. The matter started April 18, 2011 and was supposed to end April 18, 2012.

Joseph went home the December of 2011 and told us that he was going to sell the van because he has no money to redeem it from us. But because my mother didn’t trust in him, we denied his request to get the van and have it sold in Metro manila. He then offered us to buy the van ourselves for 200, 000. 00 pesos (which means to say we would just add Php. 125, 000 00 to the Php. 75, 000. 00 handed to joseph at first).

At that time, he was pressuring us to either give the van to him so he could sell it in Manila or purchase it with an initial payment of Php. 10, 000. 00. (adding to the Php. 75, 000) Because he was pressuring us and because he can’t give payback the money, we agreed to buy the van and then handed him the ten thousand pesos as the “secondary down payment”.

Upon receiving the money, he instructed us to send him succeeding down payments on the January of 2012 in which we accomplished by sending him Php. 25, 000. 00 as the “third down payment”. Upon receiving the third down payment, he instructed us again to hand him the next down payment this coming June 2012. Nevertheless, Joseph’s mother came to us and asked us to pay the remaining balance as early as April 18, 2012 wholly and fully.

Because of the immediacy and the extreme pressure he is giving us, we decided to withdraw our deal of buying the van. We stated that we are giving them the van back with condition that Joseph will give the money back to us wholly and fully (Php. 110, 000. 00) plus the repairs we paid for amounting to Php. 25, 000. 00. (damages were present before the van was turned over to us)

We are expecting him to pay Php. 150, 000. 00. These things were not dealt with in white and black because we trusted Jospeh because he is my mother’s nephew and my cousin. We wanted to help him during the times he needed financial aid, thus we lent him. We have the receipts and the bank deposit records with us.

1. Is it legal to include Php. 25, 000. 00 repair payments to the initial payments?
2. Do we have the control over the van even without contract? Only bank deposit slips?
3. Do we have the right to use the vehicle while it is under pawned?
4. Is it illegal to deny the request the owner to sell the van to others while it is under loan or sanla?
5. What charges can we file against him just in case Joseph denies he received such amount from us?
6. Do we have the right to sequester the vehicle?

Sir, all possible avenues for amicable settlement were considered but did not worked out. Please educate me because we are determined to push it to legal grounds to protect our money. By the way, we are not professional lenders. We just helped someone and it was our first time to enter into such transaction.

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