Property Ownership

Mississippi follows the 'title theory' or 'lien theory' for mortgages?

ATitle theory — the lender holds legal title until the mortgage is paid
BLien theory — the borrower retains title; the lender holds only a lien on the property✓ Correct
CMississippi uses neither theory; deeds of trust are used exclusively
DIntermediate theory — title transfers to the lender only upon default

Explanation

Mississippi is generally considered a lien theory state — the borrower (mortgagor) retains legal title to the property while the mortgage/deed of trust gives the lender a security interest (lien) in the property. The deed of trust mechanism facilitates non-judicial foreclosure without the lender holding title.

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