In the event the loan can’t be exercised, Fremont is needed to receive acceptance getting property foreclosure about courtroom
New courtroom reasoned one to Fremont as the a loan provider have to have acknowledged you to definitely fund on earliest three functions only explained was indeed “condemned so you can property foreclosure” until the new debtor
you are going to re-finance the loan from the otherwise close to the prevent of your basic price several months, to get along the way an alternate and you can reduced introductory speed. [Note 14] The new last factor, although not, tends to make they essentially hopeless to own subprime individuals so you’re able to re-finance unless construction pricing increased, since if homes prices stayed regular or rejected, a borrower which have a mortgage which have a loan-to-worthy of proportion of a single hundred per cent otherwise a substantial prepayment punishment was not planning feel the expected equity otherwise economic power to see a special loan.