Roxas vs. CA and Rural Bank of Dumalag, 221 SCRA 729

Petitioner Roxas is the owner of a parcel of land located at Tanza Norte, Capiz.  She obtained , thru her attorney-in-fact, an agricultural loan in the amount of PhP 2000.  Real estate mortgage was executed over the subject land as security for the loan for failure to pay upon the loan's maturity, private respondent foreclosed the mortgage; subject land was sold at public auction to the bank, being the highest bidder Roxas filed a complaint for cancellation of foreclosure of mortgage an annulment of sale against private respondent claiming that the foreclosure did not comply with the notice requirements: there was failure to post notices in the barrio where the land lies.  The RTC rendered judgment in favor of petitioner.  However, on elevating the matter to the CA, said court reversed the decision of the trial court: section 5 of RA 720 does not require personal notification to the mortgagor in case of foreclosure and there was substantial requirement of said law.

ISSUE: WON the auction sale over the subject land is void?

HELD:
The sheriff failed to publish the notices of auction sale as required by law.  Proof of publication shall be accompanied by an affidavit of the sheriff or officer conducting the foreclosure sale.  In the case at bar, the sheriff merely executed a certificate of posting which is not the affidavit required by law.  Also, the notices of foreclosure were posted in the municipality where the subject land was located, but not in the barrio.

It is settled doctrine, that failure to publish notice of auction sale as required by the statute constitute a jurisdictional defect which invalidates the sale.  Even slight deviations therefrom are not allowed.