G.R. No. 171298 - Spouses Cacayorin vs. Armed Forces and Police Mutual Benefit Association, Inc.

Petitioners Spouses Oscar and Thelma Cacayorin purchased Lot 5, Block 8, Phase I, Kalikasan Mutual Homes, San Pedro, Puerto Princesa City, from respondent AFPMBAI through a housing loan facility.
On July 4, 1994, petitioners and the Rural Bank of San Teodoro executed a Loan and Mortgage Agreement under Pag-IBIG’s Home Financing Program; loan proceeds of ₱77,418.00 were guaranteed for release upon title transfer and annotation of mortgage.

By virtue of the Rural Bank’s August 22, 1994 letter of guaranty, AFPMBAI executed a Deed of Absolute Sale in favor of petitioners.
Transfer Certificate of Title No. 37017 was issued in petitioners’ names with annotation of the mortgage under Entry No. 3364.

The Pag-IBIG loan did not push through; the Rural Bank closed and was placed under receivership by PDIC.
AFPMBAI obtained possession of petitioners’ loan documents and TCT No. 37017; petitioners failed to pay the remaining purchase price despite oral and written demands by AFPMBAI.

In July 2003, petitioners filed Civil Case No. 3812 for consignation of payment, recovery of title, and cancellation of mortgage annotation, naming AFPMBAI, PDIC, and the Register of Deeds as defendants.
AFPMBAI moved to dismiss for lack of jurisdiction (claiming HLURB jurisdiction under PD 957) and failure of prior tender; RTC denied the motion and declared PDIC in default; CA granted certiorari, set aside RTC orders, and held the HLURB to have exclusive jurisdiction; petitioners then filed this petition for review.

Whether Civil Case No. 3812 falls within the exclusive jurisdiction of the Housing and Land Use Regulatory Board under PD 957, or is a judicial consignation action exclusively cognizable by the Regional Trial Court.