Consolacion P. Chavez v. Maybank Philippines

Summary

The Supreme Court affirmed the Court of Appeals decision directing the issuance of a writ of possession in favor of Maybank Philippines following extrajudicial foreclosure. The Chavez family had mortgaged property to secure a construction loan, defaulted, and the property was foreclosed. During litigation challenging the foreclosure, parties executed a compromise agreement allowing the family to buy back the property for P40 million in installments. When they again defaulted, Maybank sought a writ of possession. The Court held that the compromise agreement did not transform the transaction into a sale or create new legal relationships, but remained subject to rescission under Civil Code Article 2041. Upon default, Maybank could pursue its original rights. The writ of possession must issue ministerially as none of the recognized exceptions applied, since the petitioners could not claim adverse possession against themselves as original mortgagors and their heirs.