316 SCRA 650


Spouses Pineda were the owners of a parcel of land which they mortgaged to DBP in consideration of a loan. As the loan was unpaid, the mortgage was foreclosed and DBP took possession of the property. It was opined by the Ministry of Justice that the subject property may not be the subject of foreclosure proceedings. The spouses then sought to redeem the property
but was denied as the land was allegedly tenanted. They then sought the cancellation of the title and specific performance.


A possessor in good faith is one who is not aware that there exists in his title or mode of acquisition any flaw, which invalidates it and he who alleges bad faith on the part of the possessor has the burden of proof.