Supreme Transliner v. Bpi Family Savings Bank

JR., J.:

This case involves the question of the correct redemption price payable to a mortgagee bank as purchaser of the property in a foreclosure sale. On April 24, 1995, Supreme Transliner, Inc. represented by its Managing Director, Moises C. Alvarez, and Paulita S. Alvarez, obtained a loan in the amount of ₱9,853,000.00 from BPI Family Savings Bank with a 714-square meter lot covered by Transfer Certificate of Title No. T-79193 in the name of Moises C. Alvarez and Paulita S. Alvarez, as collateral.1 For non-payment of the loan, the mortgage was extrajudicially foreclosed and the property was sold to the bank as the highest bidder in the public auction conducted by the Office of the Provincial Sheriff of Lucena City. On August 7, 1996, a Certificate of Sale2 was issued in favor of the bank and the same was registered on October 1, 1996.

Before the expiration of the one-year redemption period, the mortgagors notified the bank of their intention to redeem the property. Accordingly, the following Statement of Account3 was prepared by the bank indicating the total amount due under the mortgage loan agreement: x x x x Balance of Principal P 9,551,827.64 Add: Interest Due 1,417,761.24 Late Payment Charges 155,546.25 MRI 0.00 Fire Insurance 0.00 Foreclosure Expenses 155,817.23