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To: GraceZ who wrote (1606)	3/17/2001 6:30:35 PM
From: Ilaine	Read Replies (1) \| Respond to of 24758

When you buy a house using a loan the promise to pay is a contract. The contract is secured by a lien - which is a property interest - in the real estate and improvements thereto. In a deed of trust state, like Virginia and California, you also execute a document which actually conveys the property to a third party, a trustee, until you pay off the loan. iown.com In some states, called title theory states, the mortgage contains language which conveys the property to the lender. In lien theory states, the morgage creates only a lien on the property and the title remains with the borrower. Some states are a hybrid of lien and title theory, where the title remains with the borrower but the lender can take it back if the owner defaults. It is my understanding that Maryland is a title theory state. When you analyze the transaction as an economic transaction, not a legal transaction, the lender really owns a piece of your property. There's an invisible force field surrounding the bank's interest that you can't get rid of except by paying the loan off. In ancient Rome, during the time of the Twelve Tables, if you borrowed money and could not pay, the lender could take you away and keep you chained up in front of his house, because he owned part of you. From Table III 1. In the case of an admitted debt of awards made by a court, 30 days shall be allowed for payment. 2. In default of payment, after these 30 days of grace have elapsed, the debtor may be arrested and brought before the magistrate. 3. Unless the debtor discharge the debt, or someone come forward in court to guarantee payment, the creditor may take the debtor away with him and bind him with thongs and fetters the weight of which shall be fifteen pounds, or less if the creditor wishes . . . 5. In default of settlement of the claim, the debtor may be kept in bonds for 60 days. In the course of this period he shall be brought before the judge on three successive market days, and the amount of the debt shall be publicly declared. After the third market day the debtor may be punished with death or sold beyond the Tiber. If the debtor owed more than one person, they could cut him into pieces, or divide the money after he was sold into slavery.