A blanket mortgage is a single loan that is secured by more than one property at the same time. Instead of taking out a separate mortgage for each property, the borrower uses one mortgage to cover multiple properties.
Basically, a blanket mortgage is a way to finance several properties under one loan. Blanket mortgages are commonly used by developers and real estate investors who own or are buying multiple properties. They often include a release clause, which allows individual properties to be sold off one by one as long as the lender receives a specified payment. This type of mortgage can simplify financing, but it also means that if the borrower defaults, the lender can claim all of the properties covered by the loan.
