Title Theory States and Ownership

[Shafi Noss]

Hi everyone,

I am taking the Real estate certification course for Maryland, and ran into a question. In a title theory state (Like in D.C. Maryland and Virginia) I've heard people say the borrower still owns the home, but the lender retains title, and I believe they can demand full payment for the rest of the home at anytime though they usually don't. Plus, there's no need for them to go through judicial process in order to foreclose on the property. Given that the bank has title and all these powers, can anyone explain what it means for the mortgager to own the home?

[Jay Hinrichs]

I don't think your understanding this correctly..  other wise there would be no foreclosures in those states and I know for a fact there are.. @Russell Brazil  Russ will be able to explain this to you I bet.