Patrick, I get your point.  I, as a borrower, wouldn't want a lien on my property either, BUT having said that....If the loan is a construction loan, and the general contractor does not pay his subcontractors, they put in a mechanic's lien.  I, as the borrower, had no control of this issue AND, as you suggested in your post, HAVE paid the closing costs of the loan, BUT I still have the potential that some subcontractor did not get paid and will put a lien on my house.  Do my services as a "subcontractor" of the attorney/title company have any less value?  The construction worker built the house which the loan paid for, but my services were directly related to allowing the loan to close in the first place.

Mind you, I am NOT advocating this method.  I'm actually playing devil's advocate with you.  As I said in my post to Kevin, I'm really just looking to see if anyone remembers what state had that law so I can see how it is worded.  It's really just something that I remembered from a few months ago and wanted to put it out there for discussion.