A more thorough explanation:

Definition: Lien jurisdiction refers to the idea that a mortgage is similar to a lien. This means that the mortgagee (lender) only has a claim on the property, and the mortgagor (borrower) retains both legal and equitable title unless a valid foreclosure occurs. Most American states have adopted this theory, and they are commonly referred to as lien states, lien jurisdictions, or lien-theory jurisdictions. This is in contrast to title theory, where the lender has legal title to the property until the mortgage is paid off.

Examples: If a homeowner in a lien jurisdiction defaults on their mortgage, the lender can only foreclose on the property if they follow the proper legal procedures. The homeowner still has legal and equitable title to the property until the foreclosure is complete. In contrast, in a title theory state, the lender has legal title to the property until the mortgage is paid off, and the borrower only has equitable title.

Explanation: The concept of lien jurisdiction is important because it affects the rights of both the lender and the borrower in a mortgage agreement. In a lien jurisdiction, the borrower has more rights and protections, as they retain legal and equitable title to the property until a valid foreclosure occurs. This means that the lender cannot simply take possession of the property without following proper legal procedures. The examples illustrate how lien jurisdiction works in practice and how it differs from title theory.