Blanket Mortgage

Blanket mortgage...is weird. It covers more than one piece of real estate. If the mortgage fails to be paid, the real estate is collateral for the loan.

So what makes a blanket mortgage so weird? Well, the fact that it covers more than one piece of real estate means that you could sell one piece and keep the other. What effect does that have on the mortgage? Well, none really...you still can keep the mortgage as is when you sell only one of the properties.

Blanket mortgages are beloved by developers, who might buy a bigger property and split it, selling each piece separately. The next time you talk to a developer, you can nonchalantly ask about their blanket mortgages. Make sure you've got a few hours.