Finance
Indiana follows which mortgage theory when a borrower defaults?
ATitle theory — lender holds title during the loan
BLien theory — borrower holds title and lender has a lien✓ Correct
CIntermediate theory — title passes only upon default
DDeed of trust theory — a trustee holds title
Explanation
Indiana is a lien theory state. The borrower retains legal title to the property while the mortgage creates a lien in favor of the lender. The lender must foreclose judicially to enforce the lien.
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