Q&A: Is Texas a lien theory or title theory state re: mortgages?

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Question by JM: Is Texas a lien theory or title theory state re: mortgages?

Best answer:

Answer by ricardocoav
I don’t know.

Know better? Leave your own answer in the comments!

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2 Responses to Q&A: Is Texas a lien theory or title theory state re: mortgages?

  1. Texas is a lien theory state.
    The borrower holds the title, and the lender holds a lien against the property.
    See references below regarding Texas as a lien theory state. You may have to scroll down a bit in the link.
    I have bought & sold four homes in Texas, and they were always paid for by way of a mortgage, subject to a lien held by the lender. No deed of trust, no deed of reconveyance.

  2. Actually, it’s Deed of Trust theory. It’s closer to lien theory in that the buyer does hold the title subject to the lender’s lien.

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