- Petitioner
- Spouses Gildardo Loquellano
- Respondent
- Hongkong
- Citation
- G.R. No. 200553
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Peralta, J.
- Decided
- December 10, 2018
Summary
This case involves spouses who challenged the extrajudicial foreclosure of their mortgaged property by HSBC-Staff Retirement Plan. After Rosalina Loquellano's dismissal from HSBC in 1993, she initially defaulted on her housing loan but resumed payments from August 1995 to June 1996. Despite accepting these payments and continuously sending installment reminders showing reduced balances, HSBC-SRP foreclosed the property in May 1996. The Supreme Court applied the doctrine of estoppel, ruling that HSBC-SRP's acceptance of delayed payments and issuance of installment reminders estopped them from enforcing foreclosure. The Court declared the foreclosure invalid, emphasizing that creditors cannot adopt inconsistent positions that prejudice debtors who rely on their conduct in good faith.