Philippine National Bank v. Antonio Bacani

Summary

This case involves a dispute over a foreclosed property in Santiago, Isabela. After the Spouses Bacani defaulted on their loan, PNB foreclosed and became the absolute owner when the redemption period expired. Despite PNB's internal policy prioritizing former owners, the Spouses Bacani's repurchase offers were rejected as inadequate. PNB sold the property to Renato de Leon one day before a scheduled auction. The lower courts found this fraudulent and ordered reconveyance, but the Supreme Court reversed, holding that as absolute owner, PNB had full discretion to dispose of the property. The Court emphasized that internal bank policies do not create legally enforceable rights and that former owners have no right to repurchase after the redemption period expires. The decision reinforces property ownership rights and the finality of foreclosure proceedings.