What does the lien theory allow the borrower to do during the loan period?

The lien theory is a legal approach that allows a borrower to maintain ownership of the property even while the mortgage is in place. Under this theory, the lender holds a lien against the property but does not take ownership of it. This means the borrower retains all rights associated with ownership, such as living in the property, making improvements, and using it as collateral for future borrowing.

This principle contrasts with the title theory, where the lender holds title to the property until the loan is fully repaid. Therefore, the lien theory emphasizes the continuing ownership of the borrower, allowing them to have control over the property throughout the loan period.