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    Case No. 4 - Metrobank vs. Peñafiel

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    Sylvela Valdez Saqui
    Metrobank initiated foreclosure proceedings on properties mortgaged by the Peñafiels due to non-payment of loans. Metrobank published notice of the auction in Maharlika Pilipinas newspaper and posted notices, but the newspaper did not circulate in Mandaluyong City where the properties were. The Court of Appeals ruled in favor of the Peñafiels, finding Metrobank did not comply with publication requirements. The Supreme Court affirmed, holding the key requirement is for the newspaper to circulate where the properties are located, in order to properly notify potential bidders.

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    Case No. 4 - Metrobank vs. Peñafiel

    Uploaded by

    Sylvela Valdez Saqui
    38 views2 pages
    Metrobank initiated foreclosure proceedings on properties mortgaged by the Peñafiels due to non-payment of loans. Metrobank published notice of the auction in Maharlika Pilipinas newspaper and posted notices, but the newspaper did not circulate in Mandaluyong City where the properties were. The Court of Appeals ruled in favor of the Peñafiels, finding Metrobank did not comply with publication requirements. The Supreme Court affirmed, holding the key requirement is for the newspaper to circulate where the properties are located, in order to properly notify potential bidders.

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    Metrobank

    Original Title

    Case No. 4 - Metrobank Vs. Peñafiel

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    Metrobank initiated foreclosure proceedings on properties mortgaged by the Peñafiels due to non-payment of loans. Metrobank published notice of the auction in Maharlika Pilipinas newspaper and posted notices, but the newspaper did not circulate in Mandaluyong City where the properties were. The Court of Appeals ruled in favor of the Peñafiels, finding Metrobank did not comply with publication requirements. The Supreme Court affirmed, holding the key requirement is for the newspaper to circulate where the properties are located, in order to properly notify potential bidders.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    38 views2 pages

    Case No. 4 - Metrobank vs. Peñafiel

    Uploaded by

    Sylvela Valdez Saqui
    Metrobank initiated foreclosure proceedings on properties mortgaged by the Peñafiels due to non-payment of loans. Metrobank published notice of the auction in Maharlika Pilipinas newspaper and posted notices, but the newspaper did not circulate in Mandaluyong City where the properties were. The Court of Appeals ruled in favor of the Peñafiels, finding Metrobank did not comply with publication requirements. The Supreme Court affirmed, holding the key requirement is for the newspaper to circulate where the properties are located, in order to properly notify potential bidders.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    CASE No.

    METROPOLITAN BANK AND TRUST COMPANY VS. EUGENIO PEÑAFIEL


    G.R. No. 173976
    February 27, 2009

    FACTS:
    Respondent Erlinda Peñafiel and the late Romeo Peñafiel were the registered owners of
    two packs of lands in Mandaluyong City, which later on have been mortgaged to the Metrobank.
    When the spouses defaulted their loan payment, Metrobank initiated extrajudicial foreclosure
    proceedings through Diego Alleña Jr., a notary public. Peñafiel received Notice of Sale indicating
    the date, time, and the place of the public auction. The Notice of Sale was published in Maharlika
    Pilipinas on three different dates as attested by its publisher in his Affidavit of Publication.
    Additionally, the copies of the said notice were posted in three noticeable places in Mandaluyong
    City. Eventually, herein the petitioner as the sole and highest bidder won the subject lots however,
    the respondents filed a complaint against the petitioner and claims the latter failed to comply with
    the publication requirements for an extrajudicial foreclosure sale under Act 3135 but the lower
    court dismissed the case for insufficiency of evidence, hence led to the appeal of the respondents
    to the Court of Appeals (C.A). Court of Appeals agreed with the respondents on the ground that
    the petitioner did not comply with the publication requirements because Maharlika Pilipinas is a
    newspaper not circulated in Mandaluyong City where the subject properties where located,
    resulted in the reversal of the decision of the lower court.

    ISSUE:
    Whether the Metrobank complied with the publication requirements for an extrajudicial
    foreclosure sale under Act 3135.

    RULING:
    The court held that there is no distinction as to the publication requirement in extrajudicial
    foreclosure sales conducted by a sheriff or a notary public. The key element is general circulation
    of the newspaper in the place where property is located. The purpose of notice of sale is to inform
    the public of nature and condition of the property to be sold, and of the time, place and terms of
    sale. Notices were given to secure bidders and to prevent a sacrifice of property.
    The petition is DENIED.

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