Final answer:
In a lien theory state, a mortgage is the document that pledges property as security for a loan.
Step-by-step explanation:
In a lien theory state, the document that pledges the property as security is known as a mortgage. When property is financed, the buyer holds the actual title to the land, and the mortgage creates a lien on the property as security for the loan from the lender. If the borrower defaults on the loan, the lender may foreclose on the lien and repossess or sell the property to recover the outstanding debt.
In a lien theory state, the document that pledges the property as security is called a mortgage. A mortgage is a legal agreement between a borrower and a lender that allows the lender to take ownership of the property if the borrower fails to repay the loan. The mortgage is recorded in the public records as evidence of the debt and as a lien against the property.