Lien or Title Theory States (2021)
Foreclosure Process
The difference between a Lien theory or a title theory state is the way that a foreclosure of a defaulted debt is handled. A lien state requires the loan institution to file with and have court permission to auction the property. In a Title Theory state the person that requested and received the loan granted permission to sell the property if they default without court permission. The sale within these states are handled by a trustee that is an employee of the loan institution which receives payment upon selling a property. Thus a trustee has little incentive to delay sale upon default of the repayment of a loan.
Those that are label with a(*) is generally as designated with differences.
T = Title, L = Lien. To Determine Particulars and Procedures Please contact the government of that state.