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ACTS: Trial Court issued TRO enjoining the sale at public auction of the

disputed property.
Santiago, is the registered owner of a parcel of land situated at Polo,
Valenzuela, Metro Manila. Santiago claimed in her complaint that she was not aware of any
real estate mortgage she had executed against respondent bank;
She executed a Special Power of Attorney in favor of Construction
and he had not authorized anyone to execute any document for
Resources Corporation of the Philippines (CRCP) to borrow money
extrajudicial foreclosure. Since the notice of the sheriff does not
and make, execute, sign and deliver mortgages of real estate now
include her as party to the foreclosure proceedings and it is not
owned by me and standing in my name and to make, sign, execute
binding on her nor on her property
and deliver any and all promissory notes necessary in the premises.
Defendant Bank opposed the application for Preliminary Injunction
CRCP executed a Real Estate Mortgage over the Disputed Property
and asserted its right to extra judicially foreclose the mortgage on
in favor of FINASIA Investment and Finance Corporation to secure a
the Disputed Property based on recorded public documents.
loan of P1 million. The mortgage contract specifically provided that
in the event of default in payment, the mortgagee may immediately During the Hearing on petition for preliminary injunction, Santiago,
foreclose the mortgage judicially or extrajudicially. through counsel admitted the due execution of the SPA in favor of
CRCP, Real estate mortgage by CRCP to FINASIA and the OUTRIGHT
Real Estate Mortgage by CRCP in favor of FINASIA executed in favor
SALE RECEIVABLES by Finasia to defendant bank, as well the
of defendant-appellee, Pioneer Savings & Loan Bank, Inc.
supplemental deed of assignment by FINASIA to defendant bank.
(Defendant Bank, for brevity), an "Outright Sale of Receivables
without Recourse" including the receivable of P610,752.59 from RTC granted the petition for Preliminary Injunction
Defendant filed a motion to dismiss the case on the ground that the
FINASIA executed a "Supplemental Deed of Assignment" in favor of complaint DID NOT state the cause of action.
Defendant Bank confirming and ratifying the assignment in the
Trial court ordered the dismissal of the case for lack of action.
latter's favor of the receivable of P610,752.59 from CRCP and of the
mortgage constituted by CRCP over the disputed property. hence this petition
CRCP failed to settle its obligation and Defendant Bank opted for
extrajudicial foreclosure of the mortgage.

On learning of the intended sale, plaintiff-appellant filed before the

Regional Trial Court of an action for declaration of nullity of the real
estate mortgage with an application for a Writ of Preliminary