10 With regard to the annulment case RTC sustained Unionbanks contention that

10 with regard to the annulment case rtc sustained

This preview shows page 23 - 24 out of 37 pages.

10. With regard to the annulment case. RTC sustained Unionbank’s contention that the case is moot and academic already since it has already been enforced. Spouses’ MR denied but judge suggested the sposues to amend their applkication from prohibitory injunction to mandatory injunction. Spouses failed to amend. RTC denied MR, spouses elevated case to CA 11. CA held that Unionbank was in bad faith when they knew already that the ownership of the property was being questioned and still consolidated the title of their property. 12. Thus, Unionbank proceeds to SC claiming that: a. They are mortgagors in good faith and for value with the right to consolidate ownership. b. The fraud was due to the spouses negligence, so tey must bear the loss. c. No violation of due process since they were given every opportunity ti be heard. 13. Spouses claim that Unionbnank in bad faith when they vitiated the stand order of the court. Preliminary injuction not moot ISSUE: WON Unionbank is an innocent mortgagee and WON the consolidation of the title in Unionbank’s name was proper. YES. Unionbank’s consolidation of title is proper 1. Unionbank violated no standing court order. The only bar to the consolidation was the TRO ordered by Justice Lipana-Reyes, which paused the tolling of the redemption period 7 days before its expiration. When the spouses’ original complaint was dismissed for failing to attach the certificate of non-forum shopping, 2. the TRO became functus officio. Thus, the tolling of the 12-month redemption period, interrupted the filing of the complaint and the TRO, recommenced and eventually expired 7 days after the date of the disputed consolidation. Unionbank was an innocent mortgage 1. The settled rule is that the buyer in a foreclosure sale becomes the absolute owner of the property purchased if it is not redeemed during the period of one year after the registration of the sale. a. Here, the consolidation of title is a matter of right since there was no redemption of the foreclosed property and the TRO expired upon dismissal of the complaint. 2. Unionbank thus didn’t need to inform the private respondent that it was consolidating its title over the property, upon the expiration of the redemption period, without the judgment debtor having made use of his right of redemption, the ownership of the property sold becomes consolidated in the purchaser. Notice to the mortgagors (sposuses) who aren’t even parties to the mortgage contract nor to the extrajudicial sale is not necessary. 3. In real estate mortgage, when the principal obligation isn’t paid when due, the mortgagee has the right to foreclose the mortgage and have the property seized and sold and the proceeds of it shall be considered payment to the principal obligation. Foreclosure may be judicial or extrajudicial.
Image of page 23

Subscribe to view the full document.

Image of page 24
  • Spring '16

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes