In certain states, such as the state of Florida, the transfer of title to the lender does not occur until the borrower defaults. These states are referred to as:

Question

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States where the borrower retains legal title to the property while the lender holds a lien as security for the loan are known as lien theory states. In contrast, title theory states operate under the assumption that the lender holds the title to the property until the loan is paid in full, and only then does the borrower receive legal title. Florida is a lien theory state, not a title theory state. Conforming and nonconforming states are not relevant to this question.

In Certain States, Such as the State of Florida, the Transfer