Final answer:
In a lien theory state like Oklahoma, the borrower, or mortgagor, holds the deed to the property while the lender has a lien on it as security for the mortgage.
Step-by-step explanation:
Oklahoma is a lien theory state. This means that when a mortgage is used to purchase a property, the mortgagor (the borrower) holds the title to the property, while the mortgagee (the lender) has a lien on the property to secure the payment of the debt. In other words, the borrower holds lawful ownership and has the right to use and modify the property as they see fit, but the lender has a security interest in the property as collateral for the loan. If the borrower fails to comply with the terms of the mortgage, such as making necessary payments, the lender could foreclose on the lien, sell the property, and use the proceeds to pay off the debt.
In response to the multiple-choice question provided, the correct answer is:
- (b) The mortgagor holds the deed.