Article 131: Chapter 2 of the Civil Code of the Philippines

Art. 131. The donor by reason of marriage shall release the property donated from mortgages and all other encumbrances upon the same, with the exception of easements, unless in the marriage settlements or in the contracts the contrary has been stipulated. (1332a) 

           A donation propter nuptias is valid even if the property is already subject to encumbrances such as mortgage, the encumbrance shall be respected and in case of foreclosure, the donee is not responsible for the deficiency as the above stated.

Example:

            A parcel of land mortgage for P100, 000 in favor of a bank was donated to Anna, a future husband of Henry. Unfortunately, the donor-debtor was unable and cannot pay the mortgage debt when it matured and the land was sold during the foreclosure sale. If the selling price is different from the debt of P100, 000, what was happening in case of a deficiency or excess?

            It was already stated in the above article that the done shall be liable for the deficiency, but in the case of a excess, done is entitled to the said excess.