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In some states, lenders are considered the owners of mortgaged land and hold legal title, while the borrower has equitable title. Other states are lien theory states because they consider the borrowers to be the owners of mortgaged property, lenders … Continue reading
Liens are a type of encumbrances. The term encumbrances refers to any claim against a property that affects its clear title or use. Because liens are creditors’ claims that impact title, they are all considered encumbrances.