What is a blanket mortgage?

A blanket mortgage is a type of financing that secures multiple properties under one single mortgage agreement. This arrangement is commonly utilized by developers or real estate investors who wish to finance multiple properties or lots simultaneously, allowing them to streamline their financing process. By using a blanket mortgage, they can often lower their overall borrowing costs and simplify the management of their loans, as only one mortgage payment is required rather than separate payments for each individual property.

This type of mortgage typically includes a "partial release" clause, which allows for certain properties to be sold off while still keeping the remaining properties under the same mortgage. This is particularly advantageous when a developer wants to sell some lots while retaining others for future development.

In contrast, a mortgage for a single property refers to a loan secured specifically against just one piece of real estate, while a loan that cannot be reused implies a loan structure that doesn't allow for borrowing multiple times, which does not apply to blanket mortgages. Lastly, a secured loan against personal property defines a different kind of loan entirely, typically related to personal assets like vehicles or equipment, and is not focused on real estate. Therefore, the correct understanding of a blanket mortgage is that it encompasses multiple properties, making it a valuable tool for real estate professionals involved in