G.R. No. 164740. July 31, 2006.*
In 1993, Private respondent Dr. Victoria Ong granted a P1,000,000.00 loan to Dolores Ledesma and as a security for said loan, the latter issued a check and executed a deed of real estate mortgage over her house and lot. Thereafter, Ledesma sold the said house and lot to Versola spouses for P2,500,000.00. The petitioner spouses paid P1,000,000 as down payment however, they were only able to pay P50,000 for the remaining amount. To raise the full amount, petitioners spouses applied for a loan with Asiatrust Bank, Inc. The parties convened at a scheme wherein petitioner spouses will pay for obligation of Ledesma to Dr. Ong. However, when Asiatrust tried to register the Real Estate Mortgage there was an existing obligation to a certain Miladay’s Jewels, Inc., in the amount of P214,284.00 that caused the refusal to release the loan.