Gotesco Properties v. Solidbank Corporation (Now Metropolitan Bank

Summary

Gotesco Properties borrowed P300 million from Solidbank in 1995, secured by mortgage on multiple properties including land in Pampanga. When property values declined during the 1997 Asian Financial Crisis, Solidbank demanded additional collateral, which Gotesco refused to provide. After Gotesco defaulted on loan payments, Solidbank initiated extrajudicial foreclosure proceedings and won the auction sale. Gotesco challenged the foreclosure's validity, claiming a restructuring agreement existed and procedural requirements weren't met. The Supreme Court upheld the foreclosure, ruling no restructuring agreement was perfected, Gotesco was properly in default, and all procedural requirements under Act No. 3135 were satisfied. The Court affirmed that publication in a nationally circulated newspaper like Remate was valid regardless of printing location, and the writ of possession was properly issued ministerially to the winning bidder.