Creditor

Definition: A creditor is a person or organization to whom a debt is owed.

Example

A lender that holds a borrower's unpaid loan is a creditor.

Keep the distinction clear

A secured creditor has collateral supporting the claim; an unsecured creditor does not have that specific security. Being a creditor does not automatically make someone the property owner.

Related terms

Borrower · Collateral · Mortgagee

Keep studying

Mortgages: Borrower, Lender, Ownership, and Key Clauses

References: California DRE: real estate glossary

Pronunciation (US): KRED-ih-ter (capitals show stress)

Pronunciation reference: Merriam-Webster