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Heirs of Estelita Burgos-Lipat vs. Heirs of Eugenio D. Trinidad

Heirs of Estelita Burgos-Lipat, namely: Alan B. Lipat and Alfredo B. Lipat, Jr., Petitioners, versus Heirs of Eugenio D. Trinidad, namely: Asuncion R. Trinidad, Victor R. Trinidad, Imaculada T. Alfonso, Celestina T. Naguiat, Fernando R. Trinidad, Michael R. Trinidad and Josefina T. Naguiat,Respondents.

G.R. No. 185644 | 2010-03-02

D E C I S I O N


CORONA, J.:

On April 16, 1979, petitioners Estelita Burgos-Lipat and Alfredo Lipat (spouses Lipat)[1] obtained a P583,854 loan from Pacific Banking Corporation (PBC), secured by a real estate mortgage on their Quezon City property.[2] The mortgage was eventually extended to secure additional loans, discounting lines, overdrafts and credit accommodations that petitioners subsequently obtained from PBC.

Due to petitioners' failure to pay their loans, PBC foreclosed on the subject property. Eugenio D. Trinidad[3] was declared the highest bidder during the public auction and was issued a certificate of sale on January 31,...