Republic of the Philippines

Fourth Judicial Region

Regional Trial Court
Branch 86
Taal, Batangas

Marta So and Elvie So

Plaintiffs
Civil Case No._____
For: Declaration of Nullity of
Mortgage and Sale,
Recovery of
Possession and Ownership with
Damages

-versus-

XYZ Lending Corp., Olivia, Richard

And Gina all surnamed So
Defendants

x-------------------------------------------x

ANSWER

Defendant, by counsel, and to the Honorable Court, in ANSWER to

the COMPLAINT, respectfully states:

1. The Defendant XYZ Lending Corp admits the contents of paragraph 1

insofar as the plaintiffs’ and defendants’ personal circumstances is
concerned.

2. The defendant denies the allegations in paragraph 2 of the said

complaint for lack of knowledge sufficient to form a belief as to the
truth thereof.

3. The Defendant admits the allegation in paragraph 3 of the complaint

as to the mortgaged of the subject parcel of lot for TWO MILLION
Pesos (Php 2,000,000.00) but specifically denies as to the other
circumstances stated in the allegation of the said complaint for lack of
knowledge sufficient to form a belief as to the truth thereof.
4. The defendant denies the allegations in paragraph 4 of the said
complaint for lack of knowledge sufficient to form a belief as to the
truth thereof.

5. The defendant admits the allegations in paragraph 5.

6. That defendant admits the contention in paragraph 6 as to the notice

sent by the counsels’ plaintiff regarding the alleged falsification but
there is insufficient knowledge to form a belief as to the truth or falsity
of the claim thereof

7. The defendant denies the allegations in Paragraphs eight (8) to ten

(10) are specifically and vehemently denied for lack of knowledge and
information sufficient to form a belief as to the truth or falsity thereof.

ALLEGATIONS AND AFFIRMATIVE DEFENSES

In support of their defenses, Defendant replead and incorporate

the foregoing allegations insofar as they are material hereto.

8. Defendant XYZ Lending Corporation has entered into a valid contract

of real estate mortgage as evidenced by a Real Estate Mortgage
Contract attached herein as Exhibit “1” and identification cards of
Marta and Rosendo So as Exhibits “2” and “3”, respectively.

9. Defendant has examined the title offered by the herein co-

defendants, Olivia, Richard and Gina So as security for the loan and
found neither infirmity nor defect, attached herein is the copy of Tax
declaration and title, as Exhibits “4” and “5”, respectively.

10. Defendant ascertained the credibility of the herein co-defendants

through our property appraiser and credit investigator by conducting
the following:

a) Verifications with the proper Registry of Deeds, the Municipal

treasurer's office, the police and proper courts concerned, as
well interview (sic) with adjoining property owners;

b) Confirmation that the So property was up to date in the

payment of realty taxes and had no record of tax delinquencies;

c) Verification that the Rosendo So and Marta So have no

pending criminal and civil cases;

d) Findings that XYZ lending Corp found no adverse

information against Rosendo So and Marta So from owners of
neighboring properties;
 e) Findings that there was no notice of adverse claim or lis
pendens filed or registered by any person with the concerned
Registry of Deeds and have it annotated on TCT No. 053-
2018003235;

f) Copy of the ocular inspection and appraisal report is attached

hereto as Exhibit “6”

11. On October 28, 2017, Defendant credited the total proceeds of

the loan amounting to TWO MILLION PESOS (Php 2,000,000.00) in
the joint account at Banco De Oro of Marta So and Richard So with
BDO account number 123456 as evidenced by BDO Cash Deposit Slip
attached herein as Exhibit “7”.

12. On October 30, 2018, the mortgagors failed to pay the Php
2,000,000.00 loan despite oral and written demands.

13. On February 14, 2019, the corporation, under the direction of

Ex-officio Povincial Sheriff and Sheriff IV, applied for an extrajudicial
foreclosure of mortgage in court.

14. On February 16, 2019, the application was granted and the
Notice of Sale was posted in three public places of Taal Batangas
and was published once a week for at least three consecutive weeks
in a newspaper of general circulation, Copy of Notice of Sale is
attached here as Exhibit “8”.

15. On March 14, 2019, during the scheduled public auction sale
the property was sold at public auction and the highest bidder was
XYZ Lending Corporation bidding the above subject property in the
amount of Two Million Three Hundred Pesos (Php 2,300,000.00)
Philippine currency inclusive of other incidental expenses and which
amount was NOT however remitted to this office but was merely
charged/credited as full satisfaction of the mortgage obligation.

16. On May 25, 2019, a sheriff’s certificate of sale was issued in

favor of herein answering defendant attached here as Exhibit “9”.

17. On June 1, 2020, a year after the issuance and registration of

the sheriff’s certificate of sale, the mortgagor failed to redeem the
property hence, herein defendant applied for consolidation of title and
was issued with a new transfer certificate of title in its favor.

18. Defendant XYZ Lending Corporation is a mortgagee in good

faith and a subsequent innocent purchaser for value, as such, its
rights as the new owner of the subject property must be respected
and protected by the courts.
 COUNTERCLAIM

Defendant replead and incorporate the foregoing allegations in

so far as they are material hereto:
1. To serve as an example for the public good and as a
deterrent against the indiscriminate filing of baseless suits, plaintiffs
must be condemned to pay defendants exemplary damages in the
amount of Fifty Thousand Pesos (Php50,000.00)

2. To defend themselves from this clearly unfounded suit,

defendants were constrained to engage the service of Atty. Manny
Batumbakal, for which reason plaintiff should be held liable to pay
attorney’s fee in the amount of Fifty Thousand pesos (Php50,000.00)
as acceptance fee plus Five Thousand pesos (Php5,000.00) for every
scheduled date of hearing as appearance fee. The plaintiff should
also be made to pay litigation expenses and the costs of this suit.
Attached hereto is the copy of the Official Receipt as proof of
payment for Attorney’s acceptance fee, marked as Exhibit “10” and
the contract of engagement for the appearance fee, and marked as
Exhibit “11”.

CROSS-CLAIM AGAINST CO-DEFENDANT

Defendant replead and incorporate the foregoing allegations in

so far as they are material hereto:

1. That Defendants Olivia, Richard and Gina So should

reimburse answering defendant XYZ Lending Corporation
for the value of the property worth TWO MILLION THREE
HUNDRED PESOS (Php 2,300,000,00) should the court
order the reconveyance of the property to the plaintiffs as
evidenced by the Sheriff’s Certificate of Sale, marked as
Exhibit “10”;

2. That Defendants Olivia, Richard and Gina So should pay

plaintiff directly and fully on the amounts claimed by the
latter in its complain he having benefited directly and
exclusively from the transaction alleged in the complaint;

PRAYER
 WHEREFORE, premises considered, it is most respectfully prays for
unto this Honorable Court that the instant complaint be dismissed on the
ground that the plaintiff has no cause of action against herein defendants
and on the counterclaim, plaintiff be ordered to pay herein answering
defendant the following:

a. The amount of Fifty Thousand Pesos (Php50,000.00) for

exemplary damages;

b. The amount of Fifty Thousand Pesos (Php50, 000.00) for

Attorney’s acceptance fee and Five Thousand Pesos
(Php5,000.00) for Attorney’s fee per court appearance;

c. The cost of suit;

And that the co-defendants be ordered to pay the answering

defendant in case of reconveyance of property the following:
d. The value of the property worth Php 2,300,000.00; and

e. The amount the that the answering defendant may be held

liable to or be ordered or suffered to pay plaintiff under and
by virtue of the plaintiff’s claim in the present action.

The defendant likewise prays for other measures of relief just and
proper under the premises.

Respectfully submitted.

Calapan City, March 4, 2021.

MARIA GINALYN CALDERON

Counsel for the Defendant
Roll No. 77790
IBP No. 093459 01-18-21
PTR No. 0556040 01-13-21
MCLE Compliance No.IV-443584
Issued on December 12, 2020
Calicanto, Batangas City
Tel No. 288-2014
REPUBLIC OF THE PHILIPPINES)
CALAPAN CITY )S.S.

VERIFICATION AND CERTIFICATION OF NON-FORUM SHOPPING

I, EMILIO AGUINALDO, all of legal age, all Filipino, all single, and residents of
Brgy. Calicanto, Batangas City, Batangas, after being sworn in accordance with law,
hereby depose and say:

1. That I am the president and legal representative of XYZ Lending Corporation,

defendant, in the above-entitled case have caused this Answer with Affirmative
Defenses, Counterclaim and Cross Claim for Declaration of Nullity of Mortgage
and Sale, Recovery of Possession and Ownership with Damages and we have
read and understood its contents thereof;

2. That the allegations contained therein are true and correct of my own personal
knowledge and based on authentic records;

3. That we have not commenced any other action or proceeding involving the same
issue and specifically any claim involving the same issues or matter in any Court,
tribunal, or quasi-judicial agency, particularly before the Regional Trial Court; that
to the best of my knowledge, no such action or proceeding is pending in the
Supreme Court, the Court of Appeals or any other tribunal or agency, and that, if
we should learn thereafter that a similar action or proceeding has been filed or is
pending before these courts or tribunal or agency, we undertake to report that
fact to the Court within five (5) days therefrom.

IN WITNESS WHEREOF, I have hereunto set my hand this 4th day of

March, 2021.

EMILIO AGUINALDO

 
SUBSCRIBED AND SWORN to before me this 4th day of March 2021 at
Calapan City affiant exhibiting to me their government IDs.
 

MARIA GINALYN CALDERON

Notary Public
Roll No. 77790
IBP No. 093459 10-18-17
PTR No. 0556040 01-13-17
MCLE Compliance No.VI-443584
Issued on December 12, 2017
Sto. Niño, Calapan City
Tel No. 288-2014