Spouses Trinidad v. The Intermediate Appellate Court

Summary

The Supreme Court dismissed petitioners' appeal challenging the validity of a foreclosure sale's final deed. Spouses Natino mortgaged property to Rural Bank of Aguilar for P2,000.00 but defaulted. After foreclosure, they claimed bank officials granted extension of the statutory 2-year redemption period. The trial court initially ruled in their favor, applying Civil Code provisions on indefinite obligations. However, the Intermediate Appellate Court reversed, finding redemption attempts occurred after period expiration. The Supreme Court affirmed, distinguishing between statutory redemption rights and discretionary repurchase arrangements. The Court emphasized that redemption is governed by law with strict time limits, while post-expiration arrangements require proper corporate authorization and consideration. The case establishes important precedent on mortgage redemption rights and the binding effect of unofficial bank representations.