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Lien Theory vs Title Theory

Lien theory and title theory are fundamental concepts in real estate, influencing property ownership and mortgage transactions. In lien theory states, borrowers retain ownership while lenders hold a lien. Title theory states grant lenders legal ownership until the mortgage is paid off. Intermediate theory blends both. This blog explains these theories' implications on real estate transactions and foreclosure proceedings, highlighting the rights and responsibilities of borrowers and lenders.

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