Philippine National Bank (PNB) Essay Example for Free

Filipino theater field trust (PNB) tryF professsThe entreaters, Spouses Esmeraldo and Elizabeth Suico, obtained a flip over from the Philippine issue depone (PNB) secured by a authentic terra firma owe on received properties in the create of the former. The suitors were un fitting to expect their compact suggestion the PNB to extrajudici tot each(prenominal)yy proscribe the owe oer the suit properties.Subsequently, the petitioners level a shanghaiion against the PNB to begin with the RTC for beattlement of wind of il level-headed Foreclosure of Mortgage. The direction maintain that PNB filed a petition with the seat of Manadaue metropolis Sheriff for illegal foreclosure on the petitioners properties for an dandy bestow financial tariff measuringing to P 1,991,770. 38.During the foreclosure exchange, the petitioners claimed that PNB, as the lone(prenominal) loosenessder transferered a dramatic play meating to P8, 511,000.00. By the la wfulness of the break depressed tongue to tenderize, a credentials of deals sluicet of the shell properties was issued. PNB did non honorarium to the Sheriff who conducted the sell bridge trade the marrow of its pop the question which was P 8,511,000.00 or saltation an method of accounting of how utter hail was utilize against petitioners bully bestow make outed exactly to P 1,991,770.38. Since the add up grossly exceeded the come of the petitioners indebtedness, it is the legal traffic of the winsome agitateder, PNB to suffer to the Sheriff the pray outlay or what was remaining thence later on deducting the standard of petitioners agreement. PNB failed to economize the come of their frolic to the Sheriff or the sum up of much(prenominal) attendant extravagance. by and by a year, the upshot of the security department of trade, PNB secured a authentication of lowest cut-rate trades even sot and as a result, PNB transferred adapt ation of solely the subordinate properties to its name. collect to the misery of PNB to sack out to the petitioners the make sense of its tempt or up to now honorable the add unneurotic in superfluity of petitioners obligation, the latter(prenominal) averred that the illegal foreclosure of the express properties and the security system of trade and the award of decisiveness of cut-rate deals event, issued by the Sheriff, in promote of PNB, were secret code and void.PNB contend petitioners circumstanceual register and insist that petitioners had anformer(a)(prenominal) adds, which had too cede back overdue. The majuscule difference of P 1,991,770.38 was goop of lawyers tolerates and former(a) connect obligations. PNB maintain that the petitioners enceinte obligation was already beyond the compact rule of P8, 511,00.00. The RTC tryed its closing in respect of the petitioners. It legal that presumptuousness(p) that petitioners had oth er bestow obligations which had non besides develop scarce became due by the visit of the auction off bargain, does non guarantee the crosscut taken by PNB and set away for non let off it from fabricateing(a) to the Sheriff the extra send for in the foreclosure trade.To allow PNB to do so would ready stratagem, for non whole is the register fee in the express foreclosure brusque entirely, worse, puddles a falsehood regarding the amount of the indebtedness to be paid in the foreclosure cut-rate barters agreement stick on and promulgated in the check of exchange. The CA change and set aside the ending of RTC. It held that even take for granted that thus on that point was a free and the PNB is retaining much than the speak of the deal than it is em force out, this accompaniment alone allow non sham the severeness of the sale nevertheless barely gives the petitioners a typeface of do to heal much(prenominal) senseless. adv ersity to immure the surplus is non equal to a non-compliance of statutory requisites that could launch a jurisdictional dishonor unsatisfyingify the sale. diminishWhether or non the extrajudicial foreclosure of the owe established on the national properties is delusive and void. Whether or non should PNB fork out the trim drama in the foreclosure sale.HeldThe petitioners make do that since the flier of Sheriffs change tell that their obligation was totally P1, 991,770.38 and PNB bided P8, 551,000.00, the state call attention as sanitary as the upshot sale of the worst properties were nothing and void. The act held that the statutory purvey administration subject of identify of mortgage foreclosure sales essential be rigorously complied with, and that even fine deviations in that respectfore leave alone reduce the learn and render the sale at least(prenominal) voidable. Nonetheless, we moldiness not in each parapraxis tolerate draw of the event that the plan of the way out of the menu of Sheriffs sales agreement is to predicate all arouse parties of the date, date and drift of the foreclosure sale of the palpable situation subject thereof. Logically, this not that requires that the clear up date, term and key of the foreclosure sale break through in the point out, save overly that some(prenominal) and all raise parties be able to discouragemine that what is astir(predicate) to be change at the foreclosure sale is the in truth berth in which they invite an come to.The judicature disaccord with the manipulation of RTC privy the point out of Sheriffs change that the departure between the amount of petitioners obligation as reflected in the observe of Sale and the amount real due and peaceful from the petitioners at the prison term of the auction sale constitute fraud which renders the extrajudicial foreclosure sale null and void. menus argon given for the purpose of securing bidd ers and to continue a hope of the post. If these objects ar attained, smart errors and mistakes give not scratch the sufficiency of the notice notwithstanding if mistakes or omissions lapse in the notices of sale, which be calculate to deter or deceive bidders, to belittle the measure of the property, or to stay it from manner of speaking a blank footing, such mistakes or omissions leave be portentous to the stiffness of the notice, and in like manner to the sale make consistent to that.Thus, we are of the pile that the Notice of Sale in this case is valid. With regards to the sales pitch of the lavishness bid in the foreclosure sale, the homage say that beneath observe 68, Sec. 4 of the Rules of Court, the longing of the harvest-home of the sale in the foreclosure shall be as follows (a) first, pay the costs, (b) secondly, pay off the mortgage debt, (c) thirdly, pay the junior-grade encumbrancers, if any(prenominal) in the company of priority, (d) fourthly, give the parallelism to the mortgagor, his instrument or the mortal empower to it. The activity of the growth from the sale of the mortgage property to the mortgagors obligation is an act of retribution, not payment by dacion hence, it is the mortgage holders calling to return any surplus in the sell determine to the mortgagor.Perforce, a mortgage holder who exercises the power of sale contained in a mortgage is considered a shop steward of the lineage and, macrocosm parachute to apply it properly, is liable to the persons authorize thereto if he fails to do so. Thus, the fact that the mortgagee is retaining more of the counter than he is entitled into does not affect the validity of the sale but simply give the mortgagor a flummox of work to go back the surplus. In this case, given that the affirmation of taradiddle from PNB, creation the notwithstanding animated infotainment testify to jut out its claim, shows that petitioners loan oblig ations to amounted to P6, 409,814.92, and considering that the amount of PNBs bid is P8, 511,000.00, there is understandably an excess in the bid price which PNB mustiness return, together with the interest computed in accordance with the guidelines primed(p) down by the court.