Blanket Mortgage

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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.

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.

RELATED TERMS
  1. Real Estate

    Land plus anything on it, including buildings and natural resources.
  2. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  3. Blanket Appropriation

    Expenditures that are authorized on a blanket basis, without ...
  4. Collateral

    Property or other assets that a borrower offers a lender to secure ...
  5. Real Estate Investment Trust - ...

    A security that sells like a stock on the major exchanges and ...
  6. Blanket Lien

    A lien that gives the right to seize, in the event of nonpayment, ...
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