blanket mortgage

Definition

A mortgage which creates a lien on two or more pieces of property. Blanket mortgages are often used by individuals or companies that have more than one piece of real estate, and that want to take out a mortgage or second mortgage on the combined value of their properties. For example, a real estate developer with several undeveloped lots could mortgage those lots in order to build homes on them. Instead of taking a mortgage on each property, the real estate developer takes out one mortgage on the combined value of the properties.

Use blanket mortgage in a sentence

You need to make sure that you shop around and get a good price when you are looking for a blanket mortgage.

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John got a blanket mortgage when he bought his first house because he owns a bunch of trailer parks in town.

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Bob owned tow houses flat our with no debts. He wanted to get a business loan so he took out a blanket mortgage in order to get the money he needed for his business.

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