lien theory state

Definition

A state in the U.S. in which an individual who takes out a mortgage to buy a property holds the title to the property. In a lien theory state, it may be more difficult for a bank to foreclose on a property because the bank does not hold the title. In a title theory state, on the other hand, the bank holds the title to the property until the mortgage is paid off.

Use lien theory state in a sentence

You should try and know if you are doing business in a lien theory state and do your best to not break any of those rules.

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After I declared bankruptcy I was still able to keep my house because my home state is a lien theory state and I hold the title to the property.

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lien theory lien theory states