Republic of the Philippines

REGIONAL TRIAL COURT

5th Judicial Region
Branch XX
Naga City

SPOUSES JUAN AND JUANA SANTOS

Plaintiffs,

- versus - Civil Case No. L-0127

For: Declaration of Nullity of Real
Estate Mortgage

ABC BANKING CORPORATION

Defendant.
x-------------------------------------------------x

JUDICIAL AFFIDAVIT

I, ROSALINDA CRUZ, of legal age, Filipino, single, a resident of and with post office address at
123 Sta. Cruz St. Naga City, am testifying as one of the witnesses for the defendant in the above entitled
case, and, fully conscious and aware that I answer the questions propounded under oath and may thus be
held criminally liable for false testimony or perjury, under oath, hereby depose and state:

Q1 - Who is the lawyer conducting this examination and please state the place where this
examination is being conducted?

A - Atty. ____________________________, and the examination is being held at 2/F ACE Corporate
Center, Naga City.

Q2 - In what manner has Atty. ________________ conducted the examination, as regards the
questions asked and the answers you gave?

A - Atty. __________________ has encoded in her desktop computer the questions she prepared, and,
read them to me, and asked me to answer each and every question she asks.

Q3 - Is there anyone else present while the examination is being conducted?

A - None ma’am.

Q4 - Do you know the defendant in this case?

A - Yes, ma’am.

Q5 - Why do you know the defendant ABC Banking Corporation?

A - I am employed as the manager for its Naga City Office since 2010.

Q6 - What are your responsibilities as a manager?

A - I am responsible for the management and operations of the bank.

Q7 - How about the plaintiffs in this case, do you know them?

A - Not personally ma’am. But I know that they filed a complaint against ABC Banking
Corporation regarding an alleged void real estate mortgage executed in favor of the bank.

Q8 - I am showing to you a two-page certified true copy of a “Real Estate Mortgage” dated and
notarized on January 2, 1992 previously marked as Exhibit “1”, are you referring to this?

A - Yes, ma’am.
Q9 - Why did the plaintiffs in this case execute a mortgage contract?
A - It is a security for payment because the spouses Santos obtained a loan of one hundred and
fifty thousand-peso (P 150,000) from ABC Bank.

Q10 - What are the properties mortgaged by the plaintiffs in this mortgage contract?

A - The plaintiffs mortgaged two parcels of land located in Naga City, the first covered by
Transfer Certificate Title (TCT) No. 12345 and the second by Tax Declaration (TD) No. 678910 and
designated as Cadastral Lot No. 10.

Q11 - Were the plaintiffs able to pay their loan when it became due?

A - No, ma’am.

Q12 - What did the bank do, if any, when the plaintiffs defaulted on their loan obligation?

A - After several demands, both oral and written, all of which were not heeded, the bank finally
decided to foreclose the mortgage extra judicially.

Q13 - I am showing to you a one-page certified true copy of a “Notice of Extra Judicial
Foreclosure” previously marked as Exhibit “2”, are you referring to this?

A - Yes, ma’am.

Q14 - Who was the buyer of the properties when the same were sold at the foreclosure sale?

A - ABC Banking Corporation, as lone bidder, bought the properties for P400,000. ABC was
issued a Certificate of Extra-Judicial Sale.

Q15 - Showing to you this “Certificate of Extra-Judicial Sale” marked as Exhibit “3”, are you
referring to this?

A - Yes, ma’am.

Q16 - What did ABC Banking Corporation do after the issuance of the said certificate?

A - ABC secured a writ of possession after it acquired the property as winning bidder.

Q17 - Did the plaintiffs redeem the properties during the redemption period allowed by law?

A - No, ma’am.

Q18 - When the plaintiffs failed to redeem the properties what did ABC Banking Corporation do, if
any?

A - ABC Banking Corporation consolidated its ownership over the subject properties. ABC also
secured a new title over the property covered by TCT No. 12345 and new tax declaration under its name
for Lot No. 10

Q19 - I here show you to you an “Affidavit of Consolidation of Ownership”, a “Transfer Certificate
Title No. 111213” and a “Tax Declaration No. 141516”, all of which were previously marked as Exhibits
“4”, “5” and “6” respectively, are these the documents you are referring to?

A - Yes, ma’am.

Q20 - How did this case come to your attention?

A - On 1 May 2015, ABC Banking Corporation has received a copy of a complaint filed by
spouses Santos seeking the declaration of nullity of mortgage over Lot No. 10.

Q21 - What is the basis of the plaintiffs in arguing that the mortgage over Lot No. 10 is void?

A - The plaintiffs contended that a mortgage could not have been validly constituted over Lot No.
10 because they were not the owners of the property when the mortgage was created.

Q22 - What can you say about the plaintiffs’ contention?

A - Such allegation is baseless and is a desperate attempt to nullify a valid mortgage.

Q23 - Did you verify the ownership of the plaintiffs of Lot No. 10 before the execution of mortgage
contract?

A - Yes, ma’am.

Q24 - What evidence do you have to prove that the plaintiffs were the owner of Lot No. 10 before
and during the execution of mortgage contract?

A - Prior to the approval of the loan, our property appraiser and credit investigator conducted an ocular
inspection of the properties and verified that the spouses were in fact the owners of the properties. Their
residence is even constructed on Lot No. 10 during the execution of the mortgage up to present.

Q25 - I show to you an “Ocular Inspection Report” previously marked as Exhibit “7”, is this the
document you are referring to?

A - Yes, ma’am.

Q31 - Are there other evidence to prove their ownership of Lot No. 10?

A - The former tax declaration of the subject lot, Tax Declaration No. 678910, clearly reflects their
ownership of the property as early as 12 September 1990 or a little less than two years prior to the
constitution of mortgage.

Q32 - I show to you this “Tax Declaration No. 678910” marked as Exhibit “8”, is this the same tax
declaration which proves the plaintiffs’ ownership over Lot No. 10?

A - Yes, ma’am.

Q33 - Do you have anything to add?

A - None, ma’am.

In witness whereof, I here sign my name this 1st day of September, 2015 at Naga City,
Philippines.

ROSALINDA CRUZ

SUBSCRIBED and SWORN to before me, this 1st day of September, 2015 at Naga City,
personally appearedROSALINDA CRUZ with LTO Driver’s License No. HE98765 to expire on 08
March 2016, known to me to be the same person who executed this Judicial Affidavit and who
acknowledged to me that the same as her free act and deed.

Witness my hand and seal.

Doc. No. ___

Page No. ___
Book No.___
Series of 2015

LAWYER’S ATTESTATION

I, ___________________________________, under my own oath as a lawyer hereby attest that I

conducted the examination of the witness, that I have faithfully recorded the questions I asked and the
corresponding answers that the witness gave, and that neither I nor any other person, then present or
assisting me coached the witness regarding her answers.

In witness whereof, I here sign my name this 1st day of September, 2015 at Naga City,
Philippines.

___________________________________

SUBSCRIBED and SWORN to before me, this 1st day of September, 2015 at Naga City,
personally appeared____________________________________ with LTO Driver’s License No.
IR7890123 to expire on 27 January 2016. I further certify that I personally examined the affiant and I am
satisfied that she fully understood and voluntarily executed the foregoing attestation.
 Witness my hand and seal.

Doc. No. ___

Page No. ___
Book No.___
Series of 2015

Copy furnished: (by personal service)

ATTY. _______________________
Counsel for the Plaintiffs

123 Mayon Ave., Naga City