"latches"
Facts:
A parcel of land owned by the spouses Capay was mortgage to and subsequently extrajudicially foreclosed by Traders Royal Bank (TRB). To prevent property sale in public auction, the Capays filed a petition for preliminary injunction alleging the mortgage was void because they did not receive the proceeds of the loan. A notice of lis pendens (suit pending) was filed before the Register of Deeds with the notice recorded in the Day Book. Meanwhile, a foreclosure sale proceeded with the TRB as the sole and winning bidder. The Capays title was cancelled and a new one was entered in TRB’s name without the notice of lis pendens carried over the title. The Capays filed recovery of the property and damages. Court rendered a decision declaring the mortgage was void for want of consideration and thus cancelled TRB’s title and issued a new cert. of title for the Capays.
