Contracts

Maine is considered a 'title theory' or 'lien theory' mortgage state?

ATitle theory — the lender holds title until the mortgage is paid
BLien theory — the borrower holds title and the mortgage is a lien on the property✓ Correct
CIntermediate theory — title passes to the lender only upon default
DMaine does not use mortgages

Explanation

Maine is a lien theory state. The borrower holds title to the property, and the mortgage serves as a lien on the property in favor of the lender.

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