Cited Laws
TL;DR — Ruling
WHEREFORE, for failure of petitioner to deposit the amount of P1,418,060.08 to the Clerk of Court in trust for [the] mortgagor, the petition for writ of possession is DENIED. SO ORDERED.
accordingly issued a Certificate of Sale. Proceedings before the Regional Trial Court On June 23, 2000 and during the period of redemption, petitioner filed a verified petition for issuance of a writ of possession. Petitioner alleged that notwithstanding its demands, respondent refused and failed to turn over actual possession of the foreclosed properties. The case was docketed as LRC Case No. 00-0096 and raffled to Branch 257 of the Regional Trial Court (RTC) of Parañaque City. While the petition was pending with the trial court, respondent redeemed the property covered by Transfer Certificate of Title No. 101234. [16] On May 25, 2001, the RTC rendered a Decision [17] denying petitioner's application for the issuance of a writ of possession because it failed to deposit the surplus proceeds from the foreclosure sale. It ruled that: While the outstanding obligation of the corporation as of August 25, 1999 is P5,251,705.67 (Exh. C), the property was sold at public auction for P6,669,756.75 on January 27, 2000. Under the law, the buyer of the property is obligated to pay the contract price of P6,669,756.75 less the obligation of P5,251,705.67. Hence, the purchaser of the property should still pay the auctioneer the amount of P1,418,060.08. x x x Metropolitan Bank and Trust Co. has obligation to pay the amount of P1,418,060.08, which is the difference of the purchase price to the outstanding obligation. Since the outstanding obligation as of August 25, 1999 was only P5,251,705.67 while the purchase price is P6,669,765.75, the highest bidder of the property is still obligated to pay the price difference of P1,418,060.08. The amount should be deposited at the Office of the Clerk of Court in trust for the mortgagor. WHEREFORE, for failure of petitioner to deposit the amount of P1,418,060.08 to the Clerk of Court in trust for [the] mortgagor, the petition for writ of possession is DENIED. SO ORDERED.