Under a lien theory arrangement, which party retains title to the mortgaged property until the loan is repaid?

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Multiple Choice

Under a lien theory arrangement, which party retains title to the mortgaged property until the loan is repaid?

Explanation:
Under lien theory, the borrower retains legal title to the property while the lender holds only a security interest in the form of a lien. The mortgage serves as collateral, not a transfer of ownership, so the title stays with the mortgagor until the loan is repaid. The mortgagee is the lender who holds the lien, not the title. Terms like trustee and beneficiary belong to a deed of trust arrangement, which is a different framework where a trustee holds title for a beneficiary. When the loan is repaid, the lien is released and title remains with the mortgagor; if the borrower defaults, the lender can foreclose to satisfy the debt.

Under lien theory, the borrower retains legal title to the property while the lender holds only a security interest in the form of a lien. The mortgage serves as collateral, not a transfer of ownership, so the title stays with the mortgagor until the loan is repaid. The mortgagee is the lender who holds the lien, not the title. Terms like trustee and beneficiary belong to a deed of trust arrangement, which is a different framework where a trustee holds title for a beneficiary. When the loan is repaid, the lien is released and title remains with the mortgagor; if the borrower defaults, the lender can foreclose to satisfy the debt.

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