Participants and Variant Terminology
In general terms, the main participants in a mortgage are:
Creditor
Anyone who loans money.
The creditor has legal rights to the debt secured by the mortgage and often makes a loan to the debtor of the purchase money for the property. Typically, creditors are banks, insurers or other financial institutions that make loans available for the purpose of a real estate purchase.
A creditor is sometimes referred to as the mortgagee or lender.
Debtor
A debtor means the person who owes payment against a secured obligation.
The debtor(s) must meet the requirements of the mortgage conditions set by the creditor in order to avoid the creditor enacting provisions of the mortgage to recover the debt. Usually, the debtors will be the home-owners, landlords or businesses who are purchasing their property by a loan.
A debtor is sometimes referred to as the mortgagor, borrower, or obligor.
