Lien-Theory

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January 1, 1 6 min read Definitions

Lien-Theory Foreclosure Mortgage Law Real Estate Lending Property Rights Loan Default Real Estate Investment

States whose laws give a lien on property to secure debt. This is contrasted with title-theory states where the lender holds the title. In lien-theory states, borrowers have the right to use and enjoy the property unless they default, at which point lenders may foreclose.