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iragen [17]
3 years ago
12

Sondra, a buyer, signs all the required mortgage documentation, promising to make all payments to her lender. Unfortunately, Son

dra falls on hard times and misses multiple payments, and the bank has indicated that it is going to foreclose on her. The foreclosure proceedings are more difficult for the lender because Sondra holds the title to the land. What kind of state does Sondra live in?
Social Studies
1 answer:
Mkey [24]3 years ago
5 0

<u>Answer: </u>

The kind of state that Sondra lives in is a lien theory state.

<u>Explanation:</u>

  • Across the United States, two types of theories for the mortgage are followed by the states. One is the lien theory and the other is the title theory.
  • In lien theory, the deed of the mortgage remains in the custody of the buyer whereas the title also stays with the buyer.
  • The majority of states in the United States have adopted the title theory which is the opposite of lien theory in functionality.
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