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this is Joe prep intercom trying to make concepts simple so you get a career off the ground lien theory and title theory what does it mean it has to do with the way each state interpret your mortgage law each state will fall into one of those categories therefore if your state functions are lien theory then you should know the most about what lien theory means if your state functions under title theory you should know more about what Tunnel theory means all these separate pieces will eventually come together one beautiful moment while the lightbulb will just go off in your head each Theory has special considerations on who will hold title and how foreclosure proceedings will take place if they were to become necessary this distinction does not matter if a person always makes their payments on time if the payments are not made and a foreclosure is needed there are some important differences between lead theory States and those that recognize title theory ownership lets go over some bas