Finance
Ohio is a 'lien theory' state. This means that when a borrower gives a mortgage:
AThe lender holds legal title to the property until the loan is paid off
BThe borrower retains title and the lender holds only a lien against the property✓ Correct
CThe property is held in trust by a neutral third party
DNo lien is recorded; only the note is used
Explanation
Ohio is a lien theory state. The borrower retains title to the property; the lender holds a lien (the mortgage) as security. The lender must foreclose to take possession upon default.
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