Most states have adopted the:
A) title theory, which gives the mortgagor the right of ownership and possession.
B) lien theory, under which the mortgagor retains title and is entitled to possession to the exclusion of the mortgagee, even if the mortgagor defaults.
C) title theory, which brings no right of redemption.
D) position that the person who owns property subject to a mortgage will not be liable to the creditor for "waste."

Question

Quizplus · Accepted Answer

The lien theory, prevalent in most states, allows the mortgagor (borrower) to retain both the title and possession of the property despite any default, distinguishing it from the title theory where the mortgagee (lender) holds the title until the mortgage is paid off.

Most States Have Adopted The