CASE DIGEST: Spouses Ong vs. Premier Development

G.R. No. 159615 : February 9, 2011

SPOUSES VICTOR ONG and GRACE TIU ONG, Petitioners, v. PREMIER DEVELOPMENT BANK, THE PROVINCIAL SHERIFF OF RIZAL GRACE S. BELVIS and DEPUTY SHERIFF VICTOR S. STA. ANA, Respondents.

MENDOZA, J.:


FACTS:

Kenlene Laboratories, Inc. with Spouses Ong acting as Director and Treasurer, respectively, obtained a loan from Premier Development Bank (PDB) in the amount of P10,000,000.00.

Spouses Ong executed a promissory note obligating themselves to pay PDB on or before September 27, 1997 the amount of the loan with interest at 31% per annum. The petitioners’ loan application with the PDB was secured by a real estate mortgage over Spouses Ong’s residential property in West Greenhills, San Juan, Metro Manila.

For failure of the Spouses Ong to pay their monthly amortizations, PDB initiated extrajudicial foreclosure proceedings on the real estate mortgage.

The deputy sheriff issued a certificate of posting which was followed by the issuance of an affidavit of publication. The mortgaged property was thereafter sold to PDB in a public auction.

Spouses Ong instituted an action for annulment of extrajudicial foreclosure before the RTC alleging non-compliance with the formal requirements of notice and publication under Act No. 3135 specifically that: 1) the sheriff failed to post the notice of sale in the premises of the mortgaged property and the place where the auction was conducted and other conspicuous public places within the Municipality of San Juan; and 2) the newspaper Alppa Times, where the notice of sale was published, was not a newspaper of general circulation.

The RTC held that there were no irregularities in the conduct of the foreclosure proceedings, which resulted in the grant of the writ of possession. The CA affirmed in toto this RTC decision.

ISSUE: Whether or not the Court of Appeals erred in sustaining the validity of the extrajudicial foreclosure proceedings

HELD:

Petition lacks merit.

CIVIL LAW: Foreclosure irregularities

The issue raised by Spouses Ong of whether the legal requirements for a valid foreclosure sale under Act No. 3135 has been actually followed is a question of fact that does not deserve a review by this Court.

The RTC and the CA ruled that the foreclosure proceedings conducted on the mortgaged property of Spouses Ong enjoyed the presumption of regularity in the absence of evidence to the contrary. The Court respects the ruling of these courts.

DENIED.

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