In a lien theory state, what does the lender hold?

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Multiple Choice

In a lien theory state, what does the lender hold?

Explanation:
In a lien theory state, the borrower keeps the title to the property and the lender holds a lien as security for the loan. The lien is a legal claim against the property that allows the lender to foreclose if the borrower defaults, without the lender owning the property. The mortgage typically creates that security interest, while a deed of trust is a different mechanism used in some states. So the lender’s interest is best described as a lien on the property.

In a lien theory state, the borrower keeps the title to the property and the lender holds a lien as security for the loan. The lien is a legal claim against the property that allows the lender to foreclose if the borrower defaults, without the lender owning the property. The mortgage typically creates that security interest, while a deed of trust is a different mechanism used in some states. So the lender’s interest is best described as a lien on the property.

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