G.R. No. 164470 ; November 28, 2011
VIOLA CAHILIG and ANTONIO G. SIÑEL, JR., Petitioners, vs. HON. EUSTAQUIO G. TERENCIO, Regional Trial Court of Kalibo, Aklan, Branch 8; THE PROVINCIAL SHERIFF, Kalibo, Aklan; and MERCANTILE CREDIT RESOURCES CORPORATION, Respondents.

FACTS

Soterania G. Siñel executed deeds of real estate mortgage over a portion of Lot 402 in favor of Moneytrend Lending Corporation on April 14, 1997, and September 17, 1997. The mortgages were assigned to Mercantile Credit Resources Corporation on March 31, 1999. Due to non-payment, the mortgages were extrajudicially foreclosed, and Mercantile Credit emerged as the highest bidder. After the redemption period expired without redemption, a final deed of sale was issued on March 19, 2001. Mercantile Credit filed an ex-parte motion for a writ of possession, which the RTC granted on June 29, 2001, finding that the possessor, Viola Cahilig (daughter of Soterania), was not a third party holding the property adversely to the mortgagor. A motion for reconsideration was denied. The writ was implemented with a notice to vacate. Antonio G. Siñel, Jr. later filed a third-party claim, asserting that he and his siblings bought the property from their mother, Soterania, through deeds of sale dated March 2, 1993. Mercantile Credit moved for an alias writ of possession, which the RTC granted on December 20, 2002, ordering its implementation with police assistance if necessary. Petitioners’ subsequent motions were denied, though the court required Mercantile Credit to post an indemnity bond. Petitioners filed a special civil action for certiorari with the Court of Appeals, alleging grave abuse of discretion for not quashing the alias writ despite their third-party claim. The Court of Appeals dismissed the petition, ruling petitioners were not third parties holding the property adversely to the judgment debtor. Their motion for reconsideration was denied.

ISSUE

Whether the Court of Appeals erred in upholding the issuance of the alias writ of possession, specifically in ruling that petitioners Viola Cahilig and Antonio G. Siñel, Jr. are not third parties holding the subject property adversely to the mortgagor, Soterania Siñel.

RULING

The Supreme Court denied the petition and affirmed the Court of Appeals’ decision. The Court held that the issuance of a writ of possession to a purchaser in an extrajudicial foreclosure sale is a ministerial duty once the redemption period expires. The right to possession is based on the purchaser’s ownership. The remedy is available against the mortgagor and those claiming rights under them, such as successors-in-interest. The Court found that petitioners, as children and alleged vendees of the mortgagor, are not third parties holding the property adversely. Their claim of ownership based on deeds of sale executed before the mortgage was deemed an attempt to thwart the writ, especially since they also inconsistently claimed to have inherited the property. The pendency of other actions for annulment of the mortgage and foreclosure does not bar the ministerial issuance of the writ. The indemnity bond posted by Mercantile Credit adequately protected petitioners’ interests if they eventually vindicate their claim in a separate action.