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Definition of 'Blanket Mortgage'
A mortgage which covers two or more pieces of real estate. The real estate is held as collateral on the mortgage, but the individual pieces of the real estate may be sold without retiring the entire mortgage.
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Investopedia explains 'Blanket Mortgage'
This is an alternative to a developer having to take out numerous individual properties within a large property purchase that they intend to sell in individual parts. The blanket mortgages are typically taken out to cover the costs of purchasing and developing land that developers plan to subdivide into individual lots.
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Owning property isn't always easy, but there are plenty of perks. Find out how to buy in.
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If you have property to sell and want to avoid capital gains tax, a Section 1031 exchange may be the answer.
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Search and compare the best fixed and adjustable mortgage rates in your area with Bankrate.com.
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