Emmanuel C. Villanueva v. Cherdan Lending Investors Corporation

Summary

This Supreme Court case establishes that the ministerial duty to issue a writ of possession after extrajudicial foreclosure ceases when a third party is in actual possession of the property claiming rights adverse to the mortgagor. Villanueva successfully opposed Cherdan's writ of possession by proving he was the actual possessor claiming ownership through allegations that spouses Peñaredondo fraudulently obtained title via falsified donation. The Court applied Section 33, Rule 39 and Article 433 of the Civil Code, emphasizing that third parties in adverse possession cannot be summarily ejected without due process and proper judicial proceedings. The decision reinforces property rights protection and procedural due process requirements in foreclosure proceedings involving innocent third parties.