117. Tarnate v. CA (G.R. No.

100635; February 13, 1995)

Facts: Petitioners obtained various loans from Ibaan Rural Bank which is secured by a mortgage
over several parcels of land. They eventually failed to pay the loan and an Extrajudicial
Foreclosure was executed. The bank was the highest bidder during the foreclosure and
certificates of sale were awarded to it.

The bank filed an action for the payment of the remaining balances of the loans because
the proceeds from the sales were insufficient against the amounts of the loans. The RTC ruled
in favor of the bank and ordered the petitioners to pay for the deficiency. The CA affirmed the
decision.

Issue: Whether the petitioners are liable for the deficiency of the proceeds from the
Foreclosure as against the amount of loans secured.

Held: YES. The mortgages are merely security for the debts and not intended to satisfy the
payments for such. On the issue that the properties were sold at a very low price, a remedy
could have been availed but the petitioners failed to. In any event, the petitioners shall satisfy
the remaining unsatisfied portion of the debt.