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.
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.
Taken from Investopedia
No comments:
Post a Comment