G.R. No. 115068 November 28, 1996
FORTUNE MOTORS (PHILS.) INC., petitioner, vs. METROPOLITAN BANK AND TRUST COMPANY and THE COURT OF APPEALS, respondents.

FACTS

Fortune Motors obtained several loans from Metropolitan Bank and Trust Company, secured by a real estate mortgage. Due to non-payment, the bank initiated extrajudicial foreclosure proceedings. The sheriff posted notices at three public places in Makati and published the notice of sale in “The New Record” newspaper on June 2, 9, and 16, 1984. The property was sold at public auction to the bank as the highest bidder. After the redemption period lapsed, the bank consolidated title. Fortune Motors filed a complaint to annul the foreclosure, which the Regional Trial Court granted. The Court of Appeals reversed this decision, prompting Fortune Motors to elevate the case to the Supreme Court via a petition for review.

ISSUE

The primary issue is whether the extrajudicial foreclosure of the real estate mortgage complied with the mandatory publication and posting requirements under Act No. 3135 .

RULING

The Supreme Court denied the petition and affirmed the Court of Appeals’ decision, upholding the validity of the foreclosure sale. The Court found full compliance with Act No. 3135 . On publication, the affidavit of the publisher of “The New Record” established it as a newspaper of general circulation, as it disseminated local news, had paying subscribers, and was published regularly. The law does not require the largest circulation nor publication within the same city as the property, especially since Makati was part of Rizal province at the time, where the newspaper circulated. On posting, the sheriff’s certificates confirmed posting at three conspicuous public places—the Sheriff’s Office, the Assessor’s Office, and the Register of Deeds in Makati. Act No. 3135 does not require posting on the property itself. The Court also noted the presumption of regularity in the performance of official duties by the sheriff, which petitioner failed to rebut with clear evidence of irregularity. Consequently, all statutory requirements were duly satisfied, rendering the foreclosure and sale valid.