In lien theory states, what is a mortgage primarily viewed as?

In lien theory states, a mortgage is primarily viewed as a lien on real property. This means that when a borrower takes out a mortgage, they are not transferring ownership of the property to the lender; instead, they are giving the lender a legal claim—known as a lien—against the property to secure the loan.

In this framework, the property owner retains legal title to the property, while the lender has a subordinate interest in the property. If the borrower defaults on the mortgage, the lender can enforce the lien through legal processes, which may ultimately lead to foreclosure.

This understanding sets it apart from other interpretations seen in title theory states, where the mortgage might be perceived more as a transfer of ownership to the lender until the debt is paid off. Additionally, the concept emphasizes the importance of the borrower's rights to the property while ensuring the lender’s investment is secured.