Question

In a title theory state, is judicial foreclosure required?
a) Yes
b) No

Answer 1

No, in a title theory state, judicial foreclosure is not required for lenders to repossess a property, as lenders hold the title and can carry out a non-judicial process to sell the property upon default.

Step-by-step explanation:

In a title theory state, the mortgage lender holds the title to the property until the mortgage is paid in full. Upon default by the borrower, the lender can take possession of the property without judicial foreclosure. Thus, in a title theory state, judicial foreclosure is not a requirement for lenders to repossess a property.

Mortgage lenders have the power to sell the property after a trustee's sale or similar non-judicial process. This is opposed to lien theory states where the borrower holds the title and lenders typically must go through the state's judicial process to foreclose on a property.