Blanket Mortgage

A “blanket mortgage” is a type of loan that covers multiple properties under a single mortgage agreement. This arrangement is often used by real estate developers, investors, or businesses that own several pieces of real estate and prefer to consolidate their financing into one loan rather than managing separate mortgages for each property.

The key feature of a blanket mortgage is that it allows for the release of individual properties from the mortgage lien as they are sold, without requiring the entire loan to be paid off. This flexibility makes it particularly useful for developers who may want to sell off individual lots or units while still holding the mortgage on the remaining properties.