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Simple English definitions for legal terms

lien theory

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A quick definition of lien theory:

Lien theory: This is the idea that a mortgage is like a lien, which means that the lender only has a claim on the property and the borrower still owns it unless the lender forecloses. Most states in America follow this theory. The opposite is title theory, where the lender actually takes legal ownership of the property until the loan is paid off.

A more thorough explanation:

Definition: Lien theory is the idea that a mortgage is like a lien, which means that the lender only has a claim on the property and the borrower still owns the property unless the lender forecloses on it. This theory is adopted by most American states.

Example: Let's say you want to buy a house, but you don't have enough money to pay for it all at once. You can get a mortgage from a bank, which means the bank will lend you the money to buy the house. However, the bank will also have a claim on the house until you pay back the loan. This claim is like a lien, and it means that the bank can foreclose on the house if you don't make your mortgage payments.

This example illustrates how lien theory works in practice. The bank doesn't own the house, but it has a claim on it until the borrower pays back the loan. If the borrower defaults on the loan, the bank can foreclose on the house and take ownership of it.

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ParallelAgreeableOrangutan
15:56
I wanna be in Michigan in the summer and only in the summer
fair
@ParallelAgreeableOrangutan: true, maybe the lack of safeties is indicative of a monetary cushion for failure
NosyBeagle
15:57
no matter where i go i'll be shaking ass. ya girl beagle is POOR
15:59
wtf goin on at notre dame i wonder
ParallelAgreeableOrangutan
16:00
@JupitersMoons: ooh good point! meanwhile all my safeties WLed me anyway, so much for safe
16:00
maybe they ghosting me cus i said im part of the lgbt
wasn't there 30 percent more applicants
there were no safties
ParallelAgreeableOrangutan
16:02
was ND's app the one that wanted to know marital status and a bunch of other irrelevant Qs?
16:04
i totally forgot i filled it out like frikcing 6months ago
16:04
omg im gona shit my pants at work
ParallelAgreeableOrangutan
16:05
no did you take a laxative
16:06
no dude hell no im so scared of laxatives since my bulimia phase
body is just relaspsing
@ParallelAgreeableOrangutan: I was just putting in A's first, I also got rejected by Yale and WL at Chicago
ParallelAgreeableOrangutan
16:07
HI FRIEND guys a celebrity has entered the chat
ParallelAgreeableOrangutan
16:11
oh no it's a Friday fo pee em UMich R wave :(
16:17
i aint going outside no more
16:17
too many ticks
idk who we were talking about but I would also take mich $$ over hls
16:22
yay
sometimes I wonder why they gave me so much money
ParallelAgreeableOrangutan
16:33
because you're amazing and you deserve good things
16:40
awe yea
16:40
u gona be the best queenest lawyer ever
16:41
where llama
oh hey I just got a GW WL feeler
NosyBeagle
16:56
omg sloth u poop
ParallelAgreeableOrangutan
17:22
@JupitersMoons: !!! crossing fingers for you
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