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Gsis v. CA Digest
Gsis v. CA Digest
CA
G.R. No. 40824
February 23, 1989
When Instrument is Payable to Order
FACTS: Respondents Spouses Racho together with Spouses
Lagasca executed 2 deeds of mortgage on November 13, 1957
and April 14, 1958 respectively, in favor of petitioner Government
Service Insurance System (GSIS). At the same time, they gave a
parcel of land as security covered by a TCT and executed a
promissory note. Lasagca Spouses executed an instrument,
Assumption of Mortgage wherein they obligated to assume the
aforesaid obligation to the GSIS and to secure the release of the
mortgage covering the land owned by private respondent which
was mortgaged to the GSISall of which was not fulfilled.
Respondent failed to comply with the conditions of the mortgage,
particularly the amortizations, that led GSIS extrajudicially
foreclose the mortgage and sell the same though public auction.
After two years, respondents filed a complaint against petitioner
and the Lagasca spouses praying that the extrajudicial foreclosure
made on their property be declared null and void and to be able to
recover the property and/or GSIS to pay them the value and/or be
allowed to repurchase the land. They also ask for moral damages
and attorneys fees.
ISSUE/S: Whether or not the extrajudicial foreclosure made by
GSIS was null and void.