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.

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lien theory lien theory states