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Facts: GSIS granted to the Spouses Bacaling a real estate loan of P600, 000 for the
development of the Bacaling-Moreno subdivision. The spouses executed a real
estate mortgage over four lots owned by them in favor of GSIS as a security for
their loan. But out of the approved amount, only P240, 000 was released to them.
The Bacalings failed to finish the subdivision project and pay the amortizations of
the loan so GSIS filed a complaint for judicial foreclosure of the mortgage. The court
ordered for the payment of the amount released together with interests.
Mrs. Bacaling failed to pay the judgment debt within 90 days from the receipt of
decision. Hence, the mortgaged lots were sold at a public auction where GSIS was
the highest bidder.
In 1961, GSIS filed a motion for confirmation of the sale and further asked for a
deficiency judgment. In 1972, Maria Teresa Integrated Development Corporation
(MTIDC) as alleged assignee of the mortgagor's Right of Redemption filed a motion
for the exercise of such right which was granted by the trial court.
Thereafter, written proposals were sent by said respondent to the GSIS for the
redemption of the foreclosed property, but the GSIS required cash payment of the
redemption price. In 1975 Mrs. Bacaling tried to re-open the case but the court
denied her motion. It confirmed the sale and rendered deficiency judgment in favour
of GSIS.
MTIDC filed a motion for reconsideration asking for the restoration of the right of
redemption. The respondent court modified its earlier order and allowed MTIDC to
redeem the property.
Issue: WON after the judicial foreclosure of a real estate mortgage and the
confirmation of the sale, the trial court may grant or fix another period for the
redemption of the foreclosed property by the assignee of the mortgagor's equity of
redemption.
Ruling: