HOMEOWNERS SAVINGS AND LOAN BANK, VS. ASUNCION P. FELONIA AND LYDIA C. DE GUZMAN, REPRESENTED BY MARIBEL FRIAS.

Ruling

WHEREFORE, judgment is hereby rendered directing the [Felonia and De Guzman] and the [Delgado] to execute a deed of mortgage over the property in question taking into account the payments made and the imposition of the legal interests on the principal loan. On the other hand, the counterclaim is hereby dismissed for lack of merit. No pronouncements as to attorneys fees and damages in both instances as the parties must bear their respective expenses incident to this suit. [6] Aggrieved, Delgado elevated the case to the CA where it was docketed as CA-G.R. CV No. 49317. The CA affirmed the trial court decision. On 16 October 2000, the CA decision became final and executory. [7] Inspite of the pendency of the Reformation case in which she was the defendant, Delgado filed a Petition for Consolidation of Ownership of Property Sold with an Option to Repurchase and Issuance of a New Certificate of Title (Consolidation case) in the RTC of Las Piñas, on 20 June 1994. [8] After an ex-parte hearing, the RTC ordered the issuance of a new title under Delgados name, thus: WHEREFORE, judgment is rendered- Declaring [DELGADO] as absolute owner of the subject parcel of land covered by Transfer Certificate of Title No. T-402 of the Register of Deeds of Las Piñas, Metro Manila; Ordering the Register of Deeds of Las Piñas, Metro Manila to cancel Transfer Certificate of Title No. T-402 and issue in lieu thereof a new certificate of title and owners duplicate copy thereof in the name of [DELGADO]. [9] By virtue of the RTC decision, Delgado transferred the title to her name. Hence, TCT No. T-402, registered in the names of Felonia and De Guzman, was canceled and TCT No. 44848 in the name of Delgado, was issued. Aggrieved, Felonia and De Guzman elevated the case to the CA through a Petition for Annulment of Judgment. [10] Meanwhile, on 2 June 1995, Delgado mortgaged the subject property to Homeowners Savings and Loan Bank (HSLB) using her newly registered title. Three (3) days later, or on 5 June 1995, HSLB caused the annotation of the mortgage. On 14 September 1995, Felonia and De Guzman caused the annotation of a Notice of Lis Pendens on Delgados title, TCT No. 44848. The Notice states: Entry No. 8219/T-44848 NOTICE OF LIS PENDENS filed by Atty. Humberto A. Jambora, Counsel for the Plaintiff, that a case been commenced in the RTC, Branch 38, Manila, entitled ASUNCION P. FELONIA and LYDIA DE GUZMAN thru VERONICA P. BELMONTE, as Atty-in-fact (Plaintiffs) v.s. MARIE MICHELLE DELGADO defendant in Civil Case No. 91-59654 for Reformation of Instrument. Copy on file in this Registry. Date of Instrument Sept. 11, 1995 Date of Inscription Sept. 14, 1995 at 9:55 a.m. [11] On 20 November1997, HSLB foreclosed the subject property and later consolidated ownership in its favor, causing the issuance of a new title in its name, TCT No. 64668. On 27 October 2000, the CA annulled and set aside the decision of the RTC, Las Piñas City in the Consolidation case. The decision