In a certain state, a mortgagee holds a lien on real property offered as collateral for a loan. The mortgagor retains both legal and equitable title to this real property. The state where this real property is located is BEST characterized as which type?

This state is best characterized as a lien theory state.

Explanation:

In a lien theory state, the buyer retains both legal equitable title to the real property during the mortgage term. The court is obliged to order and supervise the foreclosure procedure which may be more difficult for the lender than in a title theory state, due to the mortgager is retaining title to the land and not the borrower.