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?