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4pages-Remedies in Case of Default-1999-Maglaque v. Planters Development Bank20210505-12-963s2u
4pages-Remedies in Case of Default-1999-Maglaque v. Planters Development Bank20210505-12-963s2u
SYNOPSIS
The Supreme Court reiterated its ruling that factual issues are not subject
to review by the Court; and that a secured creditor has three options in case of
death of the mortgagor namely: to waive the mortgage and claim the entire
debt from the estate of the mortgagor as an ordinary claim; to judicially
foreclose the mortgage and prove any deficiency as an ordinary claim, and to
extrajudicially foreclose the mortgage without right to file a claim for any
deficiency. Here, respondent Bank availed itself of the third option.
SYLLABUS
DECISION
PARDO, J : p
On September 24, 1980, the bank sold the property to the spouses Angel
S. Beltran and Erlinda C. Beltran, for thirty thousand (P30,000.00) pesos.
The plaintiff amended the complaint twice to implead the other heirs of
the spouses Maglaque, and defendant Beltran spouses, the buyers of the
property in question. prLL
Thereafter, the parties submitted the case for decision on the basis of
their memoranda.
On March 27, 1989, plaintiffs appealed the case to the Court of Appeals. 8
After due proceedings, on March 26, 1993, the Court of Appeals rendered
decision affirming the appealed decision in toto.
On February 2, 1994, the Court resolved to give due course to the petition
and required the parties to file their respective memoranda.
Except for the first assigned error, the rest of the issues raised are
factual, hence, not subject to review by this Court. 12
As to the first assigned error, the rule is that a secured creditor holding a
real estate mortgage has three (3) options in case of death of the debtor. 13
These are:
"(1) to waive the mortgage and claim the entire debt from the
estate of the mortgagor as an ordinary claim;
"(2) to foreclose the mortgage judicially and prove any deficiency
as an ordinary claim; and
SO ORDERED.
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Davide, Jr., C.J., Melo, Kapunan and Ynares-Santiago, JJ., concur.
Footnotes
1. Nathanael P. de Pano, Jr., J., ponente, Abad Santos, Jr. and Austria-Martinez,
JJ. concurring.
2. CA-G.R. CV No. 22489, promulgated on March 26, 1993.
14. Perez vs. Philippine National Bank, 17 SCRA 833, 838; Jacob vs. Court of
Appeals, 184 SCRA 294, 301.