SAGUAN v PBCOM

Facts: Saguan obtained a loan of 3M from PBC and mortgaged his 5 lands. Saguan defaulted. PBC
extrajudicially foreclosed the property and won as the highest bidder in the auction sale. Because Saguan
failed to redeem, the properties were consolidated in the name of PBC which later on filed a writ of
possession. Saguan filed an opposition since PBC failed to return the excess amount of the extrajudicial
foreclosure sale. PBC points to Saguans remaining unsecured obligations with the former to which the excess
or surplus proceeds were applied.

Issue:
1) WON the writ of possession should be issued?
2) WON PBC may unilaterally apply the excess proceeds to petitioners remaining unsecured obligations?

Ruling:
1) Yes. A writ of possession is an order enforcing a judgment to allow a persons recovery of possession of
real or personal property. This writ may be issued either 1) within the one-year redemption period, upon
filing of the bond, 2) after the lapse of the redemption period, without the need of a bond.

In this case, the issuance of RTC of a writ of possession in favor of PBC is proper since the redemption
period has already expired. The duty of the trial court to grant a writ of possession in such instances is
ministerial, and the court may not exercise discretion or judgment. Even if the excess proceeds were not
returned to the petitioner, the writ is still valid.

A party may file a petition to set aside the foreclosure sale to cancel the writ of possession in the same
proceeding where the writ was requested. However, in this case, petitioners do not challenge the validity
of the foreclosure only the contention that the excess proceeds were not returned to them.

2) No. The foreclosure of petitioners properties was meant to answer only the obligation secured by the
mortgage. Even if the petitioners have remaining obligations with the respondent, these obligations were
not collateralized by the foreclosed mortgage.

The petitioners remedy lies in a separate civil action for collection of a sum of money and not an action to
set aside the foreclosure sale.