An operative theory in states that treat mortgages as instruments granting security rights to a lender,but legal title remains with the borrower at all times.These are called lien theory states. In lien theory states, lenders must usually resort to judicial foreclosure and obtain a court order authorizing sale of the property to satisfy a debt. The alternative is the title theory of mortgages and title theory states, in which the borrowers transfer legal title to the lender,who holds it in trust for the borrower under a deed of trust. Foreclosure in such states is non-judicial because the lender already has the legal title.Some states are called hybrid theory states and transfer title to the lender in an instrument called a mortgage rather than a deed of trust but allow nonjudicial foreclosures.